Trading Signal for EUR/USD for June 17 - 18, 2021: Rebound

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In early deals in the American session, the EUR / USD pair is trading below the two moving averages of 21 and 200, after the fall that occurred as a result of the hawkish Fed's announcements. At this time of writing, we note the currency pair is showing oversold signs and the eagle indicator is showing a sign of an imminent technical bounce.

The Euro is below the 200 EMA (1.2148), which suggests that there is strong bearish pressure below this level and could push lower to the March low around 1.1835. As long as the EUR / USD pair consolidates below the 200 EMA, any bounce towards this zone will be a good selling opportunity.

The US dollar (USDX) continued to strengthen following the decision of the US Federal Reserve. The central bank surprised investors by bringing forward potential interest rate hikes to 2023 due to rising inflation.

This announcement boosted the dollar, and pushed down the major currency crosses with the dollar as well as Gold. The metal broke the 1,800 level downwards. The Fed's policy update had a limited impact on stocks and crude oil.

The technical reading of the eagle indicator shows that EUR / USD is in an extremely oversold zone, and its moving line has reached 5 points where there is a probability of an imminent bounce in the EUR / USD pair in the next few hours.

Our recommendation is to buy at the current price levels above 1.1930. If you want to be more conservative, you can buy above 1.1901, there is the strong support of 3/8 of murray with targets at the top of the bearish channel that was broken.

Support and Resistance Levels for June 17 – 18 , 2021

Resistance (3) 1.2086

Resistance (2) 1.2050

Resistance (1) 1.2013

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Support (1) 1.1897

Support (2) 1.1877

Support (3) 1.1802

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Trading tip for EUR/USD for June 17 - 18, 2021

Buy above 1.1930, (Strong support), with take profit at 1.2015 (bearish channel), stop loss below 1.1895.

Buy if rebound at 1,1901 (3/8 of murray), with take profit at 1.2000, stop loss below 1.1870.

The material has been provided by InstaForex Company - www.instaforex.com

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