EUR/USD is trading within a bearish channel that is projected since September 3 and that became more bearish since September 14. The bearish pressure is still pushing the pair down, although the eagle indicator shows an increase in the volume of the market. EUR has not been able to overcome the resistance level of the SMA of 21 which is now located at 1.1718.
In the European session, the Euro has come to test the support level of -1/8 of murray around 1.1685. Will this be a double bottom signal? We only have to wait for confirmation if the EUR / USD pair breaks above 1.1718. There is 0/8 of murray, the SMA of 21 and the top of the bearish channel, which has become a strong resistance zone.
The short-term outlook looks bearish for the Euro. As long as the pair remains below 1.1718, the selling pressure could increase and there could be a drop in the pair towards the -2/8 murray level located at 1.1657. This level is key because it represents the low of November 1, 2020. A strong technical rebound is expected. If that does not happen, EUR/USD could quickly fall to the psychological level of 1.15.
The increase in bond yields is giving strength to the USDX dollar index, which is keeping all the pairs that trade against the dollar under pressure. Besides, yields of 10-year Treasuries are at a one-month high close to 1.50%. A correction in the higher bonds could give the Euro some breathing space, and could be a good chance to consolidate above 1.1718.
The key to waiting for an increase in the euro. Taking a bullish position, we could buy only if EUR/USD breaks sharply and consolidates above the bearish channel. Targets can be located at the EMA of 200 around 1.1785. The eagle indicator then rejected the 5-point level. The fact of breaking the bearish channel is a bullish signal.
Support and Resistance Levels for September 27 - 28, 2021
Resistance (3) 1.1796
Resistance (2) 1.1743
Resistance (1) 1.1618
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Support (1) 1.1682
Support (2) 1.1674
Support (3) 1.1649
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Trading tip for EUR/USD for September 27 - 28, 2021
Buy if the pair breaks above 1.1718 (SMA 21 and 0/8) with take profit at 1.1750 and 1.1785 (EMA 200), stop loss below 1.1685.