The EUR / USD pair closed the month of September at the low of 1.1561. Now on the first trading day of October, we noticed a recovery of the euro. The pair had rebounded more than 40 pips from the low of yesterday. 2/8 of murray is a strong support. If in the next few days, the pair it remains above this level, it will be a good opportunity to buy with targets up to 3/8 of murray at 1.1657.
The US dollar index #USDX, after reaching +2/8 of murray at 94.49 is making a technical correction. In the 4-hour chart, it is trading around the SMA of 21. Breaking this level and consolidating below, there will be a good opportunity for the Euro to regain strength and to rise to 1.1750 in the short term, the level of the 200 EMA.
According to the 4-hour chart, we can see that the Euro, is trading within a downward trend channel. Obviously, the euro is oversold because around 1.1561 there have been 4 attempts to break this level and it has not been able to achieve it. This suggests that in the short term, the euro could continue the technical rebound and might be able to gain momentum to consolidate above the SMA of 21 and break the bearish channel.
On the other hand, the consolidation above 1.1561 is likely to continue, so EUR/USD can test again the level of 1.1561 or 1.1570. If that happens and the pair remains above 1.1550, it will be a good opportunity to buy, with targets at 1.1662 and 1.1718 level of 4/8 murray.
The technical reading of the eagle indicator has managed to break its downward pressure line. Now EUR/USD is consolidating above this channel, after having touched the level of (5) on September 30 that represents extremely oversold levels. All in all, the indicator is showing a bullish signal that could support our strategy to buy above 1.1561.
Support and Resistance Levels for October 01 - 04, 2021
Resistance (3) 1.1646
Resistance (2) 1.1629
Resistance (1) 1.1610
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Support (1) 1.1582
Support (2) 1.1557
Support (3) 1.1535
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Trading tip for EUR/USD for October 01 - 04, 2021
Buy above 1.1596 (2/8) with take profit at 1.1626 and 1.1657, stop loss below 1.1560.
Buy if it rebounds at 1.1570 with take profit at 1.1626 and 1.1657, stop loss below 1.1535.