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EUR/USD: plan for the European session on May 7, 2019
To open long positions on EURUSD you need:
Yesterday’s weak data from the eurozone put the euro’s further growth at risk. The main goal today will be the breakdown and consolidation above the resistance of 1.1218, which will lead EUR/USD to the area of last week’s high to 1.1260 and maintain the upward potential with test levels of 1.1282 and 1.1301, where I recommend taking profits. If the report of the European Commission does not please traders, and, most likely, it will do so, then it is best to return to long positions in euro after a correction downwards from the support of 1.1180 or to rebound from a larger area of 1.1138.
To open short positions on EUR USD is required:
Bears will wait for the report of the European Commission, and an unsuccessful attempt to consolidate at the level of 1.1217 will be a signal to open short positions in the euro in order to fall and consolidate below the support level of 1.1180, the breakdown of which will push the EUR/USD to a low area of 1.138 and 1.112. With the growth of the euro above the resistance of 1.1218 in the first half of the day, it is best to open short positions to rebound from a high of 1.1260, but the intermediate resistance could be the level of 1.1240.
Indicator signals:
Moving averages
Trade is slightly above 30 and 50 moving averages, but good data is necessary for the euro’s continued growth.
Bollinger bands
The lower limit of the indicator in the 1.1187 area is an intermediate support level. A break of the upper border around 1.1218 could increase the demand for the euro.
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
