Forex Analysis & Reviews: 22.02.2021

EUR/USD has found resistance around 1.2140/50 which remains a key barrier. If the euro manages to settle above this level, it would be positioned to extend the bullish run to the 4/8 murray at 1.2207.

If it fails to break through this level, a corrections to the 1.2105 area and the 3/8 murray at 1.2085 is be expected.

On the 4-hour chart, we can observe strong resistance in the area of 1.2141. The pair has tried to break through this level several times, but it has always been rejected. Now it is facing this zone. Therefore, if the pair trades above 1.2150, our recommendation is to buy EUR/USD above this level with the targets up to 1.2207 (4/8 of murray).

On the other hand, if the price breaks through the 200 EMA level, a correction to 1.2085 is expected. This level acts as immediate support and a level of possible upward rebound where we can again buy the EUR/USD pair.

The market sentiment report shows that 59% of traders are selling the EUR/USD pair, which is likely to have a correction to 1.2085 for a new bullish wave. If it prevails above 1.2150, we expect a bullish move until the level of 1.2207.

Support And Resistance Levels For February 22 – 23, 2021

Resistance (1) 1.2182

Resistance (2) 1.2208

Resistance (3) 1.2248

Support (1) 1.2084

Support (2) 1.2051

Support (3) 1.2009

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Trading tip for EUR/USD on February 22 – 23, 2021

Buy if the price breaks above 1.2150, with take profit at 1.2207 (4/8), stop loss below 1.2120.

Sell below 1.2135 (EMA 200) with take profit at 1.2105 and 1.2085 (3/8), stop loss above 1.2160.