EUR/USD: plan for the US session on May 14 (analysis of morning deals). A chance for the euro’s growth remains, as buyers

By | May 14, 2020
EUR/USD: plan for the US session on May 14 (analysis of morning deals)

Relevance up to 20:00 UTC–5

To open long positions on EURUSD, you need:

From a technical point of view, nothing much has changed, and the data on inflation in Germany managed to keep the euro from falling further. In my morning forecast, I paid attention to the level of 1.0787 and recommended opening long positions from it when a false breakout is formed. On the hourly chart, you can see how the bears are trying to actively break below the level of 1.0787 several times, but each time the price closes above this range, which allows you to count on an upward correction in the second half of the day. While trading is above the level of 1.0787, the buy signal will be active, which may lead to an increase in EUR/USD and an update of the larger resistance of 1.0835, where the moving averages are located. If after the data on the US labor market, the pair still goes below the level of 1.0787, it is best to abandon long positions in the expectation of updating the larger lows of 1.0728 and 1.0636 and buy EUR/USD immediately on the rebound.

To open short positions on EURUSD, you need:

Sellers can only expect a breakout and consolidation below the support of 1.0787, which was not possible in the first half of the day, which will increase pressure on the euro and lead to an update of the lows in the area of 1.0728, and then to a test of large support of 1.0636, where I recommend fixing profits. If EUR/USD rises after the US labor market report, you can view short positions from the resistance of 1.0835, but only if a false breakout is formed. If there is no activity on the part of sellers, it is best to defer short positions in EUR/USD to test a larger maximum of 1.0881, which is the upper boundary of the sideways channel or to sell euros immediately on the rebound from the resistance of 1.0923 based on the correction of 25-30 points intraday.


Signals of indicators:

Moving averages

Trading is below the 30 and 50 day moving averages, which indicates a possible continuation of the euro’s growth in the short term.

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.

Bollinger Bands

A break in the upper limit of the indicator around 1.0835 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,
Analytical expert
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.