EUR/USD: attempts to consolidate in an uptrend 12 February 2021, 12:47

EUR/USD: attempts to consolidate in an uptrend

12 February 2021, 12:47

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.2151
Take Profit	1.2260
Stop Loss	1.2100
Key Levels	1.2000, 1.2095, 1.2151, 1.2260

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2095
Take Profit	1.2000
Stop Loss	1.2130
Key Levels	1.2000, 1.2095, 1.2151, 1.2260

Current trend

Quotes of the EUR/USD pair are correcting upwards, being at 1.2126.

The European Commission has shown restrained rhetoric in its outlook on the state of affairs in the EU economy, focusing on the problem of the spread of coronavirus and the introduction of additional measures to combat the pandemic. German Chancellor Angela Merkel announced yesterday that strict quarantine measures will continue to operate until at least March 7. According to her, it will be possible to talk about lifting restrictions only when the number of cases falls below 35 cases per 100K people (now this figure is 68 cases).

USD continues to trade at fairly low levels, at 90.400 in the index. The US labor market continues to experience significant difficulties. According to yesterday's data, the number of people receiving unemployment benefits was 4.545M, which is higher than the forecast of 4.490M. Initial Jobless Claims number was 793K, which exceeded the expected 757K. If the increase in the budget deficit in January by 13.4% versus December is taken into account, the prospects for the growth of USD look rather weak.

Support and resistance

On the local chart of the asset, the price is trying to consolidate in a new uptrend. Technical indicators continue holding a buy signal. Fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram is in the buy zone.

Resistance levels: 1.2151, 1.2260.

Support levels: 1.2095, 1.2000.

Trading tips

If the price continues correctional growth and consolidates above 1.2151, long positions with target at 1.2260 will be relevant. Stop-loss – 1.2100. Implementation time: 7 days and more.

If the asset reverses and declines and the price consolidates below 1.2095, short positions can be opened with the target at 1.2000. Stop-loss – 1.2130.