Relevance up to 07:00 UTC–5
To open long positions on EURUSD, you need:
In my morning forecast, I recommended opening short positions after forming a false breakout in the resistance area of 1.0818. If you look closely at the 5-minute chart, you will see that buyers tried several times to break above this range, but each time they failed, which eventually led to a decrease in EUR/USD. However, a more powerful downward momentum was also not formed, as the data for the Eurozone fully coincided with the forecasts of economists, and ahead of the report on the volume of retail trade in the United States, which may cause a mess in the market. As for buyers, their task has not changed. A breakout and consolidation above the level of 1.0818 will lead to the continued growth of the euro in the area of 1.0856. The longer-term goal will be a maximum of 1.0895, where I recommend fixing the profits. Another important task is the support of 1.0772, where the formation of a false breakout in the second half of the day will be a signal to buy the euro. Otherwise, with worse data on the US economy, it is best to consider new purchases of the euro from the minimum of 1.0728 or open long positions immediately for a rebound from the support of 1.0636 in the expectation of correction of 30-40 points within the day.
To open short positions on EURUSD, you need:
Sellers kept control of the level of 1.0818 and formed a false breakout there. While trading will be conducted below this range, we can expect to maintain pressure on the euro and reduce the pair to the lower border of the side channel 1.0772. The further direction of the market will depend on the breakdown of this level. If the bears manage to gain a foothold below this range after weak fundamental statistics for the US, then most likely, sales will increase, which will lead to a test of the lows of 1.0728 and 1.0636, where I recommend fixing the profits. If there is no serious downward movement in the second half of the day, it is best to postpone short positions until the test of the maximum of 1.0856 or sell immediately for a rebound from the resistance of 1.0895 in the calculation of correction of 30-35 points within the day.
Signals of indicators:
Trading is conducted in the area of 30 and 50 daily moving averages, which indicates the lateral nature of the market.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.
A break in the upper limit of the indicator around 1.0818 may lead to a larger increase in the euro. Bears will return to the market only after breaking the lower border of the indicator in the area of 1.0785.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence – moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Ruben Watson,
InstaForex Group © 2007-2020
Benefit from analysts’ recommendations right now
Top up trading account
Get a bonus from InstaForex
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.