The EUR / USD in 4-hour charts is quoting around 1.1808. A few hours before the US CPI data, EUR/USD is trading within a downtrend channel that is projected from September 3. This fundamental data is likely to give the euro strength to break this bearish channel and consolidate above 1.1825.
The EMA of 200 and the SMA of 21 are located around 1.1815. A consolidation and a daily close above this level could be a sign of a new bullish momentum for the euro, which could push the pair to the level of 1.1901 (3/8 of murray).
In a few minutes, the US inflation data for August will be published, where a rise in the Consumer Price Index (CPI) of 0.4% and 0.3% in the underlying is expected. If the data is below 0.4%, it will be negative for the dollar and the Euro could rise to the resistance of 1.1840 and 1.1901.
On the contrary, a daily close and a consolidation below the 200 EMA and the 21 SMA would indicate a bearish scenario. So that EUR/USD could drop to the bottom of the bearish channel located at 1.1750. If the bearish force prevails, the pair could fall to the support 0/8 of murray located at 1.1718.
Looking up, the EUR / USD pair has to face a barrier in the 2/8 of murray, around 1.1840. It is a very strong level, since June 15 the pair has approached this level more 15 times, which makes it the key point that we must consider and will mark the pivot point for the Euro.
If the pair closes above this resistance, the Euro may easily rally to the next resistance of 1.1901. This will validate the 61.8% Fibonacci retracement that was mentioned in yesterday's analysis. You can review it and get details.
Our outlook will remain bullish if the pair consolidates above the 200 EMA and if breaks the downtrend channel, targeting 1.1840 and 1.1901. The eagle indicator is bouncing above an imaginary line, with bullish targets in the next few hours.
Support and Resistance Levels for September 14 - 15, 2021
Resistance (3) 1.1874
Resistance (2) 1.1845
Resistance (1) 1.1827
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Support (1) 1.1778
Support (2) 1.1751
Support (3) 1.1733
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Trading tip for EUR/USD for September 14 - 15, 2021
Buy above 1.1825 with take profit at 1.1840 and 1.1901 (3/8), stop loss below 1.1790.
Sell below 1.1805 (SMA 21 and EMA 200), with take profit at 1.1750 and 1.1718 (0/8), stop loss above 1.1840.
The material has been provided by InstaForex Company - www.instaforex.com