EUR/USD: European session – December 6

To open long positions on EURUSD you need:

Volatility is gradually decreasing, and investor uncertainty is growing due to concerns about trade policy, budget deficits, and rising US interest rates. The eurozone economy also does not show decent results, which pushes investors away from euro purchases. Buyers of the European currency today can only rely on the formation of a false breakdown in the support area of 1.1309, which will lead to an upward correction in the area of 1.1356 and 1.1391, where I recommend taking profits. A signal to buy EUR/USD will also be a breakthrough and consolidation above the resistance of 1.1356. In case of further decline, long positions are best returned to the rebound from a low of 1.1272.

To open short positions on EURUSD you need:

The first support test of 1.1309 may lead to a slight rebound of the euro upwards by 15-20 points. However, on the second decline to this level, most likely, a breakdown will be formed with an output of at least 1.1272, where I recommend taking profits. In case of an upward correction in the first half of the day in the area of 1.1356, you can also see short positions in this range, provided that a false breakdown is formed. In a different scenario, you can sell EUR/USD immediately to rebound from a high of 1.1391.

Indicator signals:

Moving averages

Trading is conducted below the 30-day and 50-day moving averages, but the market volatility is very low, which indicates the lateral nature of the market with a bearish advantage.

Bollinger Bands

There are no signals on the Bollinger Bands indicator due to the low volatility of the market.

Indicator description

• Moving Average (average sliding) 50 days – yellow
• Moving Average (average sliding) 30 days – green
• MACD: fast EMA 12, slow EMA 26, SMA 9
• Bollinger Bands 20

The material has been provided by InstaForex Company – www.instaforex.com

Source:: EUR/USD: plan for the European session on December 6. Volatility drops amid uncertainty