EUR/USD: plan for the European session on May 8, 2019. The outlook for the EUR/USD movement remains uncertain

To open long positions on EURUSD you need:

Yesterday’s weak data for Germany and the report of the European Commission prevented the euro from breaking above the resistance of 1.1218. The main goal for today remains in this range, consolidating on which will lead EUR/USD to the area of last week’s high to 1.1260 and will retain the upward potential with the test levels of 1.1282 and 1.1301, where I recommend to lock in the profit. If the speech of European Central Bank President Mario Draghi, which is scheduled today in the morning, turns out to be negative, then long positions in the euro are best returned after the correction down from the support of 1.1170, provided there is a false breakdown, or a rebound from the large area of 1.1138.

To open short positions on EURUSD you need:

Bears will wait for Mario Draghi’s speech, and an unsuccessful attempt to consolidate at 1.1214 will signal a short position in the euro to fall and consolidate below the support level of 1.1187, the breakdown of which will push EUR/USD to the area of lows 1.1138 and 1.1112, where I recommend taking profits. With the growth of the euro above the resistance of 1.1214 in the first half of the day, it is best to open short positions to rebound from a high of 1.1260, but the level of 1.1240 can be the intermediate resistance.

Indicator signals:

Moving averages

Trade is conducted just above 30 and 50 moving averages, however, good data is needed for the euro to continue.

Bollinger bands

The lower boundary of the indicator in the 1.1170 area is the support level. A break of the upper border around 1.1210 may 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

Source:: EUR/USD: plan for the European session on May 8. The outlook for the EUR/USD movement remains uncertain

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