EUR/USD: plan for the European session on July 12. US inflation saved the dollar from a new fall

To open long positions on EURUSD you need:

Inflation data in the US limited the upward potential in the pair. Now, buyers need a breakthrough and consolidation above a resistance of 1.1284 to continue growth, and good eurozone industrial production data will push the euro even higher in the area of 1.1311 and 1.1338, where I recommend taking profits. If the EUR/USD declines due to a weak report, long positions can be seen after a false breakdown around yesterday’s support level of 1.1250, since it has already fulfilled its function once, or at a rebound from a larger low of 1.1214.

To open short positions on EURUSD you need:

Euro sellers can count on a false breakdown of the resistance of 1.1284, which will lead to a downward correction in the pair and an intermediate support test of 1.1250, from which growth has continued this morning. However, only a break of 1.1250 with good data on the rise in producer prices in the US will provide the necessary pressure on EUR/USD and a return to lows of 1.1214 and 1.1182, where I recommend taking profits. With the growth scenario for the trend, you can sell the euro on a rebound from highs of 1.1311 and 1.1338.

Indicator signals:

Moving averages

Trade is conducted above 30 and 50 moving averages, however, the upward momentum gradually loses strength.

Bollinger bands

If the euro falls, support will be provided by the lower limit of the indicator in the region of 1.1245. The breakthrough of the upper boundary in the area of 1.1280 will allow us to count on a new wave of growth.

Description of indicators

• MA (moving average) 50 days – yellow
• MA (moving average) 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 July 12. US inflation saved the dollar from a new fall