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EUR/USD: plan for the European session on Oct 7, 2019
To open long positions on EURUSD you need:
Data on a decrease in the US unemployment rate to 3.5% did not lead to a strengthening of the US dollar, which keeps the hope of euro buyers to continue the upward correction in the short term. The bulls will continue to seek to break above the resistance level of 1.0993, which will provide them with growth to the highs in the area of 1.1022 and 1.1067, where I recommend taking profits. However, protecting support at 1.0965 will be the most important task for the first half of the day, which we managed to do last Friday. The formation of a false breakdown on it is a direct signal to euro purchases. If the bulls miss this range, you can return to long positions immediately to rebound from a low of 1.0935.
To open short positions on EURUSD you need:
As last Friday, all that is required today by euro sellers in the morning is the formation of a false breakdown in the resistance area of 1.0993. However, a more important task will be a breakthrough and consolidation below support at 1.0965. Only this will allow EUR/USD to push to the lows in the area of 1.0935 and 1.0905, where I recommend taking profits. For the first half of the day the release of important statistics on the economy of the eurozone is not planned. Therefore, in the scenario of the euro growth above resistance at 1.0993, further along the trend, it is best to consider short positions on a rebound from a high of 1.1022.
Signals of indicators:
Moving averages
Trading is conducted above 30 and 50 moving average, which indicates the likely continuation of the upward correction.
Bollinger bands
In the event of EUR/USD decline in the morning, support will be provided by the lower boundary of the indicator around 1.0955. Growth will be limited by the upper limit in the area of 1.0995.
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
