FX.co ★ Trading Signal for EUR/USD for July 13 - 14, 2021: Buy above 1.1840

The EUR / USD pair, on 4-hour charts, is trading above the 21 SMA. The price is forming an inverted shoulder-head-shoulders reversal pattern and is oscillating within another symmetrical triangle pattern, both patterns indicate the pair's upside potential in the short term.

According to fundamental data, the variant of the Delta coronavirus weighs on investors' mood amid concerns that it would slow down the global economic recovery, although the US dollar has been very strong in recent weeks in view of such discouraging news.

In Europe the central bank announced that it would tolerate inflation to move above the 2% target to avoid a premature adjustment of monetary policy. This information could weaken the euro. However, the Federal Reserve recently has come up with a similar stance.

According to the chart, we can see the euro has bullish prospects. Therefore, while it is located above the SMA of 21 and 2/8 of Murray, our outlook will continue to be bullish due to the formation of these two technical patterns. We must wait only for a confirmation to be able to buy with targets at resistance of 1.1962 (4/8).

Our recommendation is to buy if the euro makes a technical rebound towards the 1.1840 area, or if it breaks the symmetric triangle and consolidates above 1.1870 with targets at 1.1962 4/8 murray zone.

Support and Resistance Levels for July 13 - 14, 2021

Resistance (3) 1.1920

Resistance (2) 1.1900

Resistance (1) 1.1877

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Support (1) 1.1833

Support (2) 1.1812

Support (3) 1.1789

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Trading tip for EUR/USD for July 13 - 14, 2021

Buy if rebound 1.1840 (2/8), with take profit at 1.1962 (4/8), stop loss below 1.1805.

Buy if breaks 1.1870, with take profit at 1.1962 (4/8), stop loss below 1.1830.