The EUR / USD has failed to consolidate above Murray's 4/8, a level that on daily charts coincides with the 21 SMA, acting as strong resistance for now, and supporting the fall above the 200 EMA in 4 hour charts.
It seems that the bulls cannot regain control of the markets yet, leaving the door open for the continuation of the short-term bearish segment with the next target at weekly lows near 1.2085 (low December 9, 2020 and 3/8 Murray).
In the meantime, additional gains are likely in the EUR / USD, as long as it is trading above the 200-period exponential moving average, today it is located at 1.2152.
As for the daily chart, the SMA of 21 is located at 1.2215, it has acted as a strong resistance pressed down to the EUR / USD, the solid break of this SMA above 1.2220 should support the continuation of the long-term uptrend .
Our recommendation is to continue selling the EUR / USD pair as long as it trades below Murray's 4/8 and below 1.2207, below this zone the pair will have strong downward pressure.
The market sentiment report for today January 13 shows a figure of 58% of operators who are selling the EUR / USD pair, this figure has increased slightly, which is a sign that the euro-dollar could consolidate above from the 200 EMA in the short term.
Support And Resistance Levels For January 13-14, 2021
Resistance (1) 1.2182
Resistance (2) 1.2229
Resistance (3) 1.2253
Support (1) 1.2150
Support (2) 1.2109
Support (3) 1.2084
Trading tip for EUR/USD for January 13-14, 2021
Buy above EMA 200 at 1.2150, with take profit at 1.2185 and 1.2215, stop loss below 1.2100.
Sell if pullback to 1.2215 ( Trend line) with take profit at 1.2145 (EMA 200) , Stop loss above 1.2242.
Buy if breaks above 1.2207, with take profit at 1.2329, stop loss below 1.2170
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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