EUR/USD: plan for the European session on Dec 2, 2019

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To open long positions on EURUSD you need:

The bears made an attempt to break through the support of 1.0990 last Friday, but this did not lead to anything, which made it possible for buyers to regain the level of 1.1010, above which trading is now ongoing. Only the formation of a false breakout in the region of this support range will be a signal to buy the European currency, however, further upward movement will directly depend on reports on the production activity of the eurozone countries. In case of weak data, which is likely to come out, a breakthrough of 1.1010 will lead to a retest of support at 1.0990, from where you can open long positions immediately for a rebound. Another important task for euro buyers is to break through the upper boundary of the side channel of 1.1035, since only going beyond it will lead to a more powerful upward momentum in EUR/USD with updating highs of 1.1059 and 1.1088, where I recommend profit taking.

To open short positions on EURUSD you need:

An unsuccessful attempt to break support at 1.0990 caused sellers to leave the market at the end of last week. Today, a very important task will be the return of EUR/USD under the middle of the side channel of 1.1010, which will inspire confidence in the bears and will lead to re-updating the lower boundary of 1.0990, where I recommend profit taking. Such a movement may occur after the release of weak reports on manufacturing activity in the eurozone. If the data is not as bad as expected, a more important task for EUR/USD sellers will be to protect the resistance at 1.1034, which is also the upper limit of the side channel. Only the formation of a false breakout at this level will be a signal to sell the euro. Otherwise, it is best to open short positions immediately on the rebound from a high of 1.1059.

Signals of indicators:

Moving averages

Trade is conducted in the region of 30 and 50 moving average, which indicates the lateral nature of the market.

Bollinger bands

Growth will be limited by the upper level of the indicator in the area of 1.1034, while the lower boundary in the area of 1.0990 will provide support.

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

Source:: EUR/USD: plan for the European session on December 2. Pressure on the euro could return after eurozone manufacturing sector

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