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EUR/USD: plan for the European session on Oct 14, 2019
To open long positions on EURUSD you need:
Today is Columbus Day in the United States, so volatility will be very low due to the holiday. The movement can only happen after the release of data on the volume of industrial production in the eurozone. With weak data, it is best to open long positions in EUR/USD after a downward correction to support 1.1008, or immediately to rebound from a larger low of 1.0975. However, the main task of the bulls will be to return to resistance at 1.1033, above which the pair will try to update last week’s highs in the area of 1.1061, where I recommend taking profits. However, due to the holiday break in many markets, it is quite possible that trading will be conducted around the level of 1.1033.
To open short positions on EURUSD you need:
The main task of the bears will be the return of EUR/USD to the support of 1.1008 and the breakdown of this level, which will provide the euro with new pressure that can push it to a low of 1.0975, where I recommend taking profits. Failure to consolidate above resistance at 1.1033, after the release of a weak report on industrial production in the eurozone, will also be a kind of signal to sell EUR/USD. Short positions can be opened immediately on the rebound from a high of 1.1061, however, the direction in the pair will depend on further negotiations between the United States and China.
Signals of indicators:
Moving averages
Trade is conducted in the region of 30 and 50 moving averages, which indicates market uncertainty.
Bollinger bands
A break of the lower boundary of the indicator in the area of 1.1015 will lead to increased pressure on the euro. Growth will be limited by the upper level at 1.1055.
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
