After falling to the low of August 20 at 1.1682 and around the -1/8 murray zone in the European session, EUR / USD has accelerated its recovery and has approached the SMA of 21. The pair could continue rising until touching the top of the bearish channel located at 1.1740. If it is broken, the price could rise to the resistance of 1.1779 (2/8).

On the other hand, the US dollar index #USDX yesterday gained strong bullish momentum and reached a new high at 93.50. This gave the euro a strong bearish movement, which led it to trade for a few hours below the level of 1,17.

The dollar index in 4-hour charts is overbought. This will be an opportunity for the euro to take advantage and rise again to the resistance zone of 1.1789 level of the 200 EMA in the short term.

Yesterday's event hurt all trading instruments against the US dollar because the US central bank indicated that a cut in the pace of asset purchases is likely to be justified soon if the economic recovery goes on steadily. Additionally, Fed Chairman Jerome Powell said asset purchases amid the Covic-19 pandemic could come to a complete halt by mid-2022.

Apart from that, the FOMC indicated that they are willing to increase interest rat in the medium term. We believe that until the next year the euro could continue trading below 1.20, there is the 200 EMA on daily charts.

In the short term, the trend for the euro looks means the bearish scenario. The 4-hour chart shows that the euro has formed a double downward channel. A consolidation above the SMA of 21 located at 1.1718 could give it the strength to break the secondary bearish channel (1.1740) and go up to the main bearish channel (1.1779) that is projected from September 3. If this channel is broken, the euro could easily rise to the resistance of 1.1840 and 1.1901 (line of 6 /8 murray).

On the contrary, if the euro consolidates below 1.1718, it will be a good opportunity to sell with targets down to -1/8 of a murray. It is likely that a double bottom technical pattern can form, only if it makes a bounce around this area, giving us another chance to buy at 1.1688.

The eagle indicator, that measures the strength and volume of the market and anticipates the probable movement, is showing a bullish signal. The key is to buy above 1.1718, so we expect it to continue rising to the resistance of 1.1801 ( 3/8 of murray) in the short term.

Support and Resistance Levels for September 23 - 24, 2021

Resistance (3) 1.1779

Resistance (2) 1,1764

Resistance (1) 1.1731

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Support (1) 1.1707

Support (2) 1.1683

Support (3) 1.1657

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Trading tip for EUR/USD for September 23 - 24, 2021

Buy above 1.1718 (SMA 21) with take profit at 1.1740 and 1.1779 (bearish channel and 2/8), stop loss below 1.1680.

Buy if rebound at 1.1688 (-1/8) with take profit at 1.1740 and 1.1779 (bearish channel and 2/8), stop loss below 1.1653.