FX.co ★ Trading signal for EUR/USD for October 11 - 12, 2021: Buy above 1,1559 (SMA 21)

EUR / USD has managed to stabilize above 1/8 of Murray located at 1.1535. When it reached that level on October 6, it had been rebounding and forming a secondary uptrend channel. It had a strong barrier at the top of the channel main bearish. Now, the price of the Euro is above the SMA of 21 which adds an opportunity to continue buying and overcome this obstacle.

Only a sharp break above the bearish channel formed in 4-hour charts and a consolidation above 1.1596, where the strong resistance of 2/8 of Murray is located, could be a sign of recovery of the Euro, and this could rise up to the EMA of 200 located at 1.1697.

On the contrary, a drop below the 21 SMA located at 1.1559, could be a sign of bearish continuation. In such a case, the Euro may fall to the support of 0/8 Murray located at 1.1474. Meanwhile, EUR/USD is expected to continue consolidating above 1.1535 ahead of the FOMC data to be published on Wednesday. The negative data from this announcement may help the Euro reach the level of 1.17.

The oscillator of the Eagle indicator is showing a bullish signal, after having fallen to the area of imminent technical rebound on October 6. Since then, it has been providing bullish signals. Only a daily close above 1.1596 could confirm this forecast, and it will be a good opportunity to buy the euro and sell the US dollar with the target at 1.1697 (EMA 200).

The market sentiment report shows 64.08% of operators are buying EUR/USD. It is a negative signal for this pair, because if this figure continues to increase and exceeds 75%, a new fall of the pair may occur to the level from 1.1470 to 1.1400. However, a weekly reading difference of -9.53 is observed, which explains that in the short term the euro could have a small recovery.

Support and Resistance Levels for October 11 - 12, 2021

Resistance (3) 1,1631

Resistance (2) 1,1596

Resistance (1) 1,1580

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Support (1) 1,1547

Support (2) 1,1521

Support (3) 1,1502

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A trading tip for EUR/USD for October 11 - 12, 2021

Buy above 1,1559 or upon a break above 1,1596 (2/8) with the take profit at 1,1657 and 1,1697 (EMA 200), the stop loss is below 1,1515.