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EUR/USD: plan for the European session on July 18, 2019
To open long positions on EURUSD, you need:
Buyers were able to gain a foothold at 1.1227, and as long as the trade will be conducted above this range, the demand for the euro will remain. The formation of a false breakout in this area will be a signal to open new long positions in order to update the maximum of 1.1261 and then exit to a large resistance of 1.1286, where I recommend taking the profit. In the scenario of the euro falling under the support of 1.1227, against the background of the lack of fundamental statistics on the eurozone, it is best to return to long positions on the rebound from the low of 1.1195.
To open short positions on EURUSD, you need:
Bears will be more active after the correction from the high of 1.1261, but the main task will be to return to the level of 1.1227, which will retain the downward potential in the pair and lead to the second wave of decline in the area of the monthly low of 1.1195, where I recommend taking the profit. If a serious return to the market of sellers from the resistance of 1.1261 will not be noticed, then I recommend postponing the short positions to the test of the maximum of 1.1261.
Indicator signals:
Moving Averages
Trade is conducted above the 30 and 50 moving averages, however, it is still quite early to talk about a change in the market trend.
Bollinger Bands
The break of the average border of the indicator in the area of 1.1227 may return new sellers to the market, but the downward potential in the first half of the day will be limited to the lower limit in the area of 1.1215.
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
