The EUR / USD pair in the morning of the American session, in 4-hours charts is trading above the 21 SMA and below the strong downtrend channel, (1.1765) a sharp break is likely to occur for an upward momentum.
The US dollar, USDX, is strengthening due to the impressive pace of coronavirus vaccines and the planned stimulus by the Biden administration of more than 2 trillion dollars raising expectations for a relatively faster recovery from the pandemic in the United States.
There are some doubts as to whether the Fed will maintain ultra-low interest rates for a longer period as this could continue to push the yield on the benchmark 10-year US government bond, and give USDX strength.
On a technical level, bearish traders are likely to wait for some subsequent sell below the 1.1738 mark (that’s where the 21 SMA sits, on 4-hour charts), before positioning themselves for any further depreciation moves. The pair could become vulnerable to accelerate the decline and test the 1.1718 support area, 0/8 from Murray and lower at 1.1655.
On the other hand, any significant rise in the EUR / USD is likely to exert strong resistance and risk rapidly disappearing near the 1.1840 mark.
This level is 1/8 of Murray, however, a sustained bullish force beyond that level could push the pair towards the 200 EMA, located at 1.1939, which should give it downward pressure there.
Therefore, a sharp break of the downtrend channel is expected, and to consolidate above this level to be able to buy, with targets at 1.1840 and 1.1939 EMA 200.
The eagle indicator is giving a bullish signal and it is likely that in the next few days the EUR / USD will reach the 1.1840 mark, as a short-term target.
Support And Resistance Levels For April 05 – 06, 2021
Resistance (1) 1.1799
Resistance (2) 1.1817
Resistance (3) 1.1847
Support (1) 1.1742
Support (2) 1.1726
Support (3) 1.1705
Trading tip for EUR/USD for April 05 – 06, 2021
Buy above 1.1775 (SMA 21 and downtrend channel) with take profit at 1.1805 and 1.1840, stop loss below 1.1730.
Sell below 1.1760 (downtrend channel) with take profit at 1.1716 (0/8), stop loss above 1.1795.
The material has been provided by InstaForex Company – www.instaforex.com
🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.
As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.