In the American pre-market, the EUR / USD pair is trading above the 21 SMA and above the 8/8 of murray, with a bullish bias. The pair is showing exhaustion, the last candles inside the fractal formed around 1.2240 suggests that the euro could be entering a correction phase.
The key level to watch this morning is the 1.2207 area. This level acts as support. As long as the price remains above 8/8 murray, there could be upward momentum to the 1.2268 + 1/8 murray area.
On the contrary, in 4-hour charts, a trade below the Sam of 21 and 8/8 of murray, the fall of the EUR / USD pair could accelerate to the support line of 7/8 of murray around 1.2146.
At this 7/8 Murray level, the uptrend channel line converges. This area could offer support to the EUR / USD pair. Therefore, it would be a good opportunity to buy at these levels. Below is the dynamic support of the 200 EMA.
Investor sentiment for Monday shows that there are 61.23% of investors who are selling the EUR / USD pair. This is a sign that the Euro could consolidate above 1.21 for a new upward momentum to the 1.2268 area. (+1/8).
Our recommendation is to sell below 8/8 and the SAM of 21 (1.2207) or to buy if it makes a technical bounce at 7/8 (1.2143).
Support and Resistance Levels for May 24 – 25, 2021
Resistance (3) 1.2271
Resistance (2) 1.2240
Resistance (1) 1.2225
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Support (1) 1.2192
Support (2) 1.2146
Support (3) 1.2121
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Trading tip for EUR/USD for May 24 - 25, 2021
Sell bellow 1.2207 (SMA 21 and 8/8), with take profit at 1.2143 (7/8), stop loss above 1.2245
Buy if rebound1.2146 (7/8 of murray), with take profit at 1.2207(8/8), stop loss below 1.2110.