The euro leaves the recent weakness behind and returns above the 200 EMA and the 21 SMA although the volume of purchases is decreasing. It must consolidate above 1.1840 for a sustained upward movement.
There is strong resistance at the murray 4/8 (1.1840) level that the EUR/USD pair has tried to break through several times but eventually failed. Above this area, gains are expected to accelerate to the 5/8 murray level located at 1.1871, and if the bullish force prevails it could rise to the strong resistance at 1.1901 (6/8).
Meanwhile, the short-term outlook for EUR/USD is seen on the bearish side. We can see on the charts that the eagle indicator has an imaginary bearish line. With each bullish attempt of the euro, the bears take control by selling the pair. Therefore, if the euro fails to consolidate above 1.1840, it will be a good selling opportunity.
Additionally, consolidation below the 200 EMA located at 1.1815 will be a sign of a bearish change in the scenario. The euro could fall to the key support of 1.1779. If the negative pressure prevails, it could fall to the 4-hour bearish channel support at 1.1750.
The market sentiment report shows that there are 50.33% of traders who are buying the EUR/USD pair which is a bearish sign. If this percentage increases and exceeds 60%, the euro could fall to the level of 1.1718 and 1.16 in the short term.
The technical reading of the eagle indicator shows a decline in volume and market strength. While the moving line does not break through the bearish channel, each attempt of the euro to recover will be a selling opportunity.
Support and Resistance Levels for September 15 - 16, 2021
Resistance (3) 1.1878
Resistance (2) 1.1862
Resistance (1) 1.1831
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Support (1) 1.1786
Support (2) 1.1770
Support (3) 1.1741
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Trading tip for EUR/USD for September 15 - 16, 2021
Sell below 1.1810 (EMA 200), with take profit at 1.1779 and 1.1750, stop loss above 1.1842.
Buy if the euro rebounds at 1.1815 with take profit at 1.1840 and 1,1871 (5/8), stop loss below 1.1780.
The material has been provided by InstaForex Company - www.instaforex.com