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EUR/USD: plan for the European session on Oct 22, 2019
To open long positions on EURUSD you need:
Saturday’s vote on Brexit failed. An attempt to vote was blocked yesterday. As a result, everything is postponed to today. The absence of important fundamental statistics will maintain low volatility in the market until the voting results appear. To continue the euro’s growth, it is required to maintain the level of 1.1147 in the first half of the day, as well as the formation of a false breakdown on it, which will update the highs in the areas of 1.1188 and 1.1226, where I recommend profit taking. However, without good news, this is unlikely to succeed. Johnson’s next unsuccessful attempt to advance his deal could put pressure on the pair. Therefore, in the scenario of a decline to the level of 1.1148 in the morning, it is best to count on purchases from a low of 1.1116, subject to the formation of a false breakout, as well as a rebound from a larger support of 1.1090.
To open short positions on EURUSD you need:
The main task of the bears today will be the return of the pair to the support level of 1.1148, which yesterday could not be done. Only in this scenario can we expect to increase pressure on the euro, which will lead to lows in the areas of 1.1116 and 1.1090, where I recommend profit taking. However, a larger downward movement can be expected only after news of the next failure of Boris Johnson or the failure of the vote on the deal. With a EUR/USD growth scenario above the resistance of 1.1188, and approval of the Brexit deal, it is best to consider new short positions from the highs of 1.1226 and 1.1263.
Signals of indicators:
Moving averages
Trade is conducted in the region of 30 and 50 moving average, which indicates market uncertainty and the brewing downward correction.
Bollinger bands
Volatility is very low, which does not provide signals on entering the market.
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
