EUR/USD: local trend reversal 10 February 2021, 10:29

EUR/USD: local trend reversal

10 February 2021, 10:29

Scenario
Timeframe	Weekly
Recommendation	BUY STOP
Entry Point	1.2173
Take Profit	1.2340
Stop Loss	1.2100
Key Levels	1.1958, 1.2062, 1.2173, 1.2340

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2062
Take Profit	1.1958
Stop Loss	1.2100
Key Levels	1.1958, 1.2062, 1.2173, 1.2340

Current trend

The EUR/USD pair is correcting upward, trading around the level of 1.2125. EUR is trading neutral against other major competitors but is significantly strengthening against USD.

The main topic of discussion in Europe remains the consequences of the COVID-19 pandemic. Yesterday, the Austrian authorities said that a large outbreak of the South African strain of the virus was recorded in the Tyrol region. 400 cases of the suspected virus have been reported, of which 293 have been confirmed. Due to a sharp increase in the number of new cases, the Greek authorities have decided to close schools and non-grocery stores for at least 2 weeks. The number of new cases in the country in the past day alone amounted to 1526.

USD Index continues to decline, trading at 90.300. Yesterday, the US Senate decided that the impeachment procedure of former President Donald Trump is not contrary to the constitution. 56 senators voted for this, and 44 against. However, to recognize the impeachment itself, at least 67 votes of members of the Senate are required.

Support and resistance

Locally, the price has broken the resistance line of the local downtrend and consolidated above it. Technical indicators gave a buy signal. Fast EMAs on the Alligator indicator crossed the signal one upwards, and the AO oscillator histogram moved into the positive zone.

Resistance levels: 1.2173, 1.2340.

Support levels: 1.2062, 1.1958.

Trading tips

After correctional growth or consolidation above the local resistance around 1.2173, buy positions with the target around ​​1.2340 are relevant. Stop loss is 1.2100. Implementation period: 7 days or more.

After decline and reversal or consolidation below the resistance of 1.2062, sell positions with the target at 1.1958 are relevant. Stop loss is 1.2100, above the local resistance.