EUR/USD is trading within a bearish channel in a 4-hour chart, below the 21 SMA and above the 4/8 murray line.

The key is the zone of 1.1840. A clear breakout and a consolidation below this zone could enable a downward move to the zone of support 1.1778.

At the moment of writing the article, the Euro has not made any break. There could be a technical rebound in the 1.1840 area and it will give us an opportunity to buy with targets at 1.1901, which represents the top of the bearish channel.

At the fundamental level, the Federal Reserve is ready to print fewer dollars, it is not yet known when it will start this measure, but without a doubt the US dollar will continue to strengthen and the Euro could fall in the long term.

Fed Vice Chairman Richard Clarida said he wants the central bank to scale back its bond purchase plan of $ 120 billion a month. The currency market will undoubtedly remain range-bound until the official data and specific dates are announced.

The Non-Farm Payroll report, which will be published tomorrow in the American session, keeps the market in suspense. According to the ADP report, the signals are negative for the American dollar.

Stronger US employment than expected could push the euro down. Meanwhile, investors believe that it will be time to sell dollars and buy euros, according to the data shown by the pollsters.

The eagle indicator is in the overbought zone. We note that its signal line has made a slight correction as a pointed upward signal. Still, we believe that in the medium term, the euro should fall since clearly the indicator has free margin. Therefore we expect a fall in the EUR / USD pair.

Support and Resistance Levels for August 05 - 06, 2021

Resistance (3) 1.1921

Resistance (2) 1.1876

Resistance (1) 1.1854

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Support (1) 1.1809

Support (2) 1.1787

Support (3) 1.1742

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Trading tip for EUR/USD for August 05 - 06, 2021

Buy if rebound 2/8 of murray at 1.1840 with take profit at 1.1901 (3/8) and stop loss below 1.1805.

Sell below 1.1830 (2/8) with take profit at 1.1779 and stop loss above 1.1875.