The EUR/USD pair faces strong resistance at 1.1785. The 200 EMA is located there, and the bearish channel line is also located there on the daily chart. The line of 1/8 murray is located at that same level, thus showing that this area has become a strong barrier for the pair.
The last 4-hours candlesticks are showing a sign of exhaustion of the bullish force. Before the opening of the American session, the EUR/USD pair is making its last attempt to break the 200 EMA.
However, the eagle indicator is showing a sign of bearish divergence, so it is key to wait for the 1.1785 level. If your margin of your trading account allows, you can sell at the current price levels.
The short-term outlook remains bearish for the Euro, as long as it remains below the 200 EMA. Any failed attempt to break through will be a selling opportunity and could push the price towards the low 1.1657 zone of -1/8 of murray.
Meanwhile, the medium-term outlook for EUR/USD is negative as the price remains below the 200 EMA located at 1.2001, according to the daily chart.
The big operators seem to be waiting for the speech of Jerome Powell, the Chairman of the US Federal Reserve, from the symposium at Jackson Hole, which will take place on Friday. After knowing the details, the Euro could face strong volatility.
Meanwhile, the market could be moving within a limited range between 1.1785 and 1.1745 levels of the SMA 21. Therefore, you can sell below the EMA of 200, with the targets at 1.1745 and 1.1718 of 0/8 murray.
Support and Resistance Levels for August 26 - 27, 2021
Resistance (3) 1.1857
Resistance (2) 1.1834
Resistance (1) 1.1785
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Support (1) 1.1736
Support (2) 1.1720
Support (3) 1.1706
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Trading tip for EUR/USD for August 26 - 27, 2021
Sell below 1.1785 (EMA 200), with take profit at 1.1745 and 1.1718 (0/8), stop loss above 1.1820.