In the trading hours of the American session, the EUR / USD pair is trading below the SMA of 21 and below the 8/8 of Murray located at 1.2207, with a downward bias, after having broken the channel of the ascending wedge.
We would be seeing a pullback after the break of the ascending wedge. If the pair manages to stay below the SMA of 21 located at 1.2217, the bias will remain bearish, and could continue its way down to the support level of the 7/8 of murray located at 1.2146.
The climb of EUR / USD is triggered by a moderate retreat of the US dollar after having reached the psychological level of 90.00 and the area of the 200 EMA that now exerts pressure. Therefore, the pair would be consolidating below 1.2217.
The catalyst could be a consolidation of the USDX above 90.00 and a rise in US Treasuries yields. EUR/USD could trade lower until the price is holding at levels of 1.2146 reversal zone of 7/8 of murray.
The technical reading of the eagle indicator is showing a bearish signal and could confirm the fall of the pair in the next few hours. For this, the price should remain below 8/8 of a murray and the Euro will continue under pressure.
The investor sentiment report shows that there are 60.51% of traders who are selling the EUR / USD pair. We noticed a 4.66% decrease compared to the previous week. This is a sign that the euro could be in a correction stage to the levels of 1.21 and 1.20 in the medium term.
Our recommendation is to watch the key level of 1.2217. If the Euro makes a pullback towards this area or consolidates below this level, we can sell with targets at 1.2143 and 1.2085 area of the 200 EMA and 6/8 of murray.
Support and Resistance Levels for May 27 - 28, 2021
Resistance (3) 1.2291
Resistance (2) 1.2240
Resistance (1) 1.2208
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Support (1) 1.2158
Support (2) 1.2129
Support (3) 1.2089
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Trading tip for EUR/USD for May 27 - 28, 2021
Sell below 1.2217 (8/8 of murray), with take profit at 1.2146 (7/8), stop loss above 1.2253.