EUR/USD: Technical Analysis and Trading Recommendations_05/03/2021

 
 
 
 
 
 
 

At the time of publication of this article, the EUR / USD pair is traded near the 1.2052 mark, remaining in the bull market zone and maintaining positive dynamics above the key support levels 1.1860 (ЕМА200 on the daily chart), 1.1930 (ЕМА144 on the daily chart).

The breakdown of the important short-term resistance level 1.2061 (ЕМА200 on the 1-hour chart, ЕМА50 on the 4-hour chart) will signal the resumption of long positions and send the pair towards the recent local high and 1.2150 (April highs and the upper border of the descending channel on the daily chart) and the resistance level 1.2180 (Fibonacci level 50% of the upward correction in the wave of the pair's decline from the level of 1.3870, which began in May 2014).

More distant targets are located at resistance levels 1.2340 (this year's highs), 1.2580 (61.8% Fibonacci level and 2018 highs).

In an alternative scenario and after the breakdown of the support level 1.1985 (EMA200 on the 4-hour chart and EMA50 on the daily chart) EUR / USD will resume its decline into the descending channel on the daily chart. Its lower border is near 1.1600 mark.

The breakdown of the support levels 1.1860 (ЕМА200 on the daily chart), 1.1780 (Fibonacci level 38.2%) will confirm the alternative scenario, and the breakdown of the support level 1.1580 (ЕМА200 and ЕМА144 on the weekly chart) will increase the risks of resuming the long-term bearish trend in EUR / USD.

Support levels: 1.1985, 1.1930, 1.1860, 1.1780, 1.1710, 1.1600, 1.1580

Resistance levels: 1.2061, 1.2150, 1.2180, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600

Trading Recommendations

Sell Stop 1.2020. Stop-Loss 1.2070. Take-Profit 1.1985, 1.1930, 1.1860, 1.1780, 1.1710, 1.1600, 1.1580

Buy Stop 1.2070. Stop-Loss 1.2020. Take-Profit 1.2150, 1.2180, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600