EUR/USD has formed a descending wedge pattern. This is a technical trend reversal figure. Only a sharp break above the bearish line that is projected from 1.1690 could confirm the recovery scenario and we could expect the euro to rise to the 200 EMA located at 1.1625.
If the EUR / USD pair is not strong enough to break this pattern sharply, we could again expect the euro to consolidate below the 21 SMA located at 1.1565. Below this level sales could again intensify and a drop to the psychological level of 1.15 could occur.
On Friday, November 5, the US dollar index reached the 6/8 Murray level, logging an annual high at 94.61. This was the price levels of September 20, 2020. This is a strong resistance area. EUR/USD failed to consolidate above and started a retracement. Later on, the euro rebounded from its annual lows around 1.1512. Therefore, if the dollar index continues with its downward correction, it could favor the upward movement of the euro for the next few days.
The market sentiment report shows that there are 60.94% of operators who are buying the EUR / USD pair. This is a negative signal for the pair and a downward movement could occur in the next few days. Before this happens, we hope that the euro will continue bouncing to the 200 EMA (1.1625). At this point, it will be a good opportunity for us to sell with targets at 1.15 and up to 1.1474 (0/8).
The eagle indicator is oscillating above an uptrend channel and is now showing a positive signal. It is expected to continue with its upward movement in the next few hours. Amid the upward move, we could see a climb towards the zone of 1.1625 (200 EMA). If the bullish force prevails, EUR/USD could reach the key level of 4/8 murray around 1.1718.
Our forecast for the next few hours is that as long as the euro remains above the SMA of 21 located at 1.1565, it will be an opportunity for us to continue buying. The main target will be the EMA of 200. If this level is surpassed, we will continue to buy until 1.17 approximately.
Support and Resistance Levels for November 08 - 09, 2021
Resistance (3) 1.1648
Resistance (2) 1.1610
Resistance (1) 1.1588
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Support (1) 1.1528
Support (2) 1.1490
Support (3) 1.1461
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A trading tip for EUR/USD for November 08 - 09, 2021
Buy above 1.1570 (SMA 21) with take profit at 1.1596 and 1.1625 (EMA 200), stop loss below 1.1535.
The material has been provided by InstaForex Company - www.instaforex.com