FX.co ★ EUR/USD Technical Analysis and Trading Tips on April 21, 2022

EUR /USD jumped to 1.0936, a 10-day high, at the start of today's European session. The sharp strengthening of the euro was probably provoked by the statement of ECB Vice President Luis de Guindos that "a rate increase is possible in July."

The EUR/USD pair broke through the important short-term resistance level at 1.0844 (200 EMA on the 1-hour chart) and headed upward, towards another important short-term resistance level at 1.0964 (200 EMA on the 4-hour chart). Nevertheless, the growth of EUR/USD stalled near the resistance level at 1.0924 (144 EMA on the 4-hour chart). We enter short positions from it. A breakdown of the support level 1.0844 will confirm our main scenario for a further decline in EUR/USD.

However, corrective growth of the pair is still possible, up to the resistance levels 1.0964, and 1.1022 (50 EMA on the daily chart). Higher is unlikely.

EUR/USD retains trading in the bear market zone below resistance levels 1.1260 (144 EMA on the daily chart and 23.6% Fibonacci retracement of the upward correction in the wave of the pair's decline from the level of 1.3870, which began in May 2014, to 1.0500) and 1.1350 (200 EMA on the daily chart). Downward dynamics prevail, making short positions preferable.

Support levels: 1.0900, 1.0844, 1.0800, 1.0765, 1.0700, 1.0500, 1.0350

Resistance levels: 1.0936 1.0964 1.1000 1.1022 1.1100 1.1130 1.1180 1.1200 1.1260 1.1285 1.1300 1.1350 1.1500 1.15 40 1.1740

Trading tips

Sell Stop 1.0895. Stop-Loss 1.0945. Sell Limit 1.0960, 1.1000, 1.1020. Stop-Loss 1.1040. Take-Profit 1.0850, 1.0800, 1.0765, 1.0700, 1.0500, 1.0350