EUR/USD: the pair resumed declining 04 March 2021, 09:32

EUR/USD: the pair resumed declining

04 March 2021, 09:32

Scenario
Timeframe	Intraday
Recommendation	SELL STOP
Entry Point	1.2020
Take Profit	1.1900
Stop Loss	1.2070
Key Levels	1.1900, 1.1951, 1.2000, 1.2022, 1.2070, 1.2100, 1.2150, 1.2200

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2075
Take Profit	1.2150
Stop Loss	1.2022
Key Levels	1.1900, 1.1951, 1.2000, 1.2022, 1.2070, 1.2100, 1.2150, 1.2200

Current trend

EUR is declining against USD during today's Asian session, developing a weak "bullish" impetus formed the day before. On Tuesday, EUR traded with an uptrend, provoked by a large-scale correction in the bond market.

The macroeconomic statistics from Europe published yesterday turned out to be ambiguous and only slightly affected the dynamics of the instrument. Markit Services PMI in Germany in February declined from 45.9 to 45.7 points, which turned out to be worse than the neutral forecast. Markit Composite PMI for the same period corrected from 51.3 to 51.1 points. Meanwhile, in the eurozone, business activity continues to gain momentum as the epidemiological situation in the world improves. Markit Services PMI increased from 44.7 to 45.7 points, while Markit Composite PMI strengthened from 48.1 to 48.8 points, exceeding neutral forecasts.

Support and resistance

Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range expands from below, indicating the potential for a "bearish" trend in the short and/or medium term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic, having reached the level of "20", reversed into an upward plane, and has not yet reacted to the resumption of EUR declining in the last few days.

Existing short positions should be kept in the short and/or ultra-short term until the signals from technical indicators clear up.

Resistance levels: 1.2070, 1.2100, 1.2150, 1.2200.

Support levels: 1.2022, 1.2000, 1.1951, 1.1900.

Trading tips

The breakdown of 1.2022 may serve as a signal to new sales with the target at 1.1900. Stop-loss – 1.2070. Implementation time: 2-3 days.

To open long positions, one can rely on the rebound from the support level of 1.2022, with the subsequent breakout of 1.2070. Take-profit – 1.2150. Stop-loss – 1.2022.