FX.co ★ Trading signal for EUR/USD for October 13 - 14, 2021: Buy above 1,1555 (SMA 21)

In the early American session, the EUR/USD pair easily broke the downtrend channel formed in 4-hour charts since September 14. After hitting the low of 1.1523 and forming the Double Bottom pattern, it has rebounded and is currently above the 21 SMA trading at 1.1563. It is likely to continue its upward move to the 2/8 Murray resistance located at 1.1596.

The Double Bottom technical pattern may be a sign of a bullish movement in the short term and there may be a recovery of the Euro to the resistance zone of the 200 EMA Located at 1.1680. A confirmation should be if the Euro consolidates above 1/8 of Murray located at 1.1535.

Given that the euro is above the bullish channel and above the SMA 21, it may be a good point to buy only if it consolidates above 1.1550. The market is likely to be quiet ahead of the publication of the FOMC minutes scheduled for this afternoon. If investors receive news on the exact date for the bond purchase cut, the euro could fall to 1.1450.

On the contrary, if the release of the FOMC minutes does not offer any clue as to when the cut will take place, this will be seen as a negative sign for the dollar and investors could turn to risky assets. In such a case, the euro may rise as high as the resistance level at 1.1680 and 4/8 of Murray at 1.1718.

The Eagle indicator is showing a sign of exhaustion of the bullish force, and an increase in market volume is likely to be positive for the euro. The immediate barrier is located at 1.1596. The upward momentum of the euro may be weak as the indicator is approaching the overbought level. Before a new upward wave there should be a technical correction.

Support and Resistance Levels for October 13 - 14, 2021

Resistance (3) 1,1631

Resistance (2) 1,1596

Resistance (1) 1,1580

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Support (1) 1,1557

Support (2) 1,1521

Support (3) 1,1493

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A Trading tip for EUR/USD for October 13 - 14, 2021

Buy above 1,1555 (SMA 21) with take profit at 1,1596 (2/8) and 1,1680 (EMA 200), stop loss below 1,1520.