On the 4-hour chart, the EUR/USD pair is consolidating above the 21 SMA and above the strong 0/8 Murray support. We can observe the formation of a technical symmetrical triangle pattern.
Yesterday, the euro/dollar pair reached the low of 1.1704 around the zone of 0/8 of Murray. It was consolidating for several hours, and after the CPI data from the United States was published, the pair made a rebound. This is a key level as it has proven to be very strong support.
As long as the Euro remains above the 0/8 Murray level (1.1718) and above the 1.1700 level, it could give the euro/dollar pair the bullish momentum and may be able to reach the 200 EMA level located at 1.1820.
Looking at EUR/USD in a broader perspective, we can say that it remains under bearish pressure as long as it trades below the 200 EMA and below the 2/8 Murray line (1.1840). Any rally that approaches these levels will be considered an opportunity to sell.
At this time of writing, the EUR/USD pair is trading within the symmetric triangle technical pattern. A sharp break above the upper edge will be an opportunity to buy, the key thing is to stay above the SMA of 21 and above the 1.1745 level.
In case the break of the technical pattern is confirmed, the next target will be found at the 1.1779 level of 1/8 Murray. If the bullish force continues to prevail, the next target is at 1.1820 and 1.1840 (EMA 200 and 2/8).
On the downside, in case of further decline, the main support appears at 1.1704, the low of August 11. A break below this key support may trigger a further pullback towards the1.1657 level of -1/8 Murray zone.
Support and Resistance Levels for August 12 - 13, 2021
Resistance (3) 1.1820
Resistance (2) 1.1779
Resistance (1) 1.1756
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Support (1) 1.1708
Support (2) 1.1682
Support (3) 1.1660
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Trading tip for EUR/USD for August 12 - 13, 2021
Buy if the price breaks above 1.1745, with take profit at 1.1780 (1/8), and 1.1820 (EMA 200), stop loss below 1.1705.