EUR/USD: plan for the European session on May 2. Powell crossed out the bulls' plans for further growth

To open long positions on EURUSD you need:

Yesterday, euro buyers were disappointed with the Fed chairman's statements, who spoke rather optimistically about the prospects for the US economy, which led to a decrease in EUR/USD. At the moment, buyers are required to return and consolidate above the resistance of 1.1215, which will return hope for the resumption of growth and lead to a repeated upward trend in the area of a high of 1.1260, where I recommend taking profits. In case the euro further declines, long positions can be seen at a false breakdown in the support area of 1.1178 or at a rebound from a larger low of 1.1150.

To open short positions on EURUSD you need:

Yesterday, the sellers showed themselves well after the test of resistance at 1.1260, to which I paid attention to in my review. An unsuccessful attempt to consolidate at 1.1215 will be another signal to open short positions in the euro with the aim of decreasing and consolidating below the support level of 11178, the breakdown of which will push EUR/USD to the area of a low of 1.1150, where I recommend taking profits. With the euro rising above the resistance of 1.1215 in the first half of the day, it is best to open short positions to rebound from a high of 1.1260.

Indicator signals:

Moving averages

Trade is conducted below 30 and 50 moving averages, which indicates a possible change of the upward trend to a downward one.

Bollinger bands

The lower limit of the indicator in the region of 1.1178 will limit the euro's downward potential. In case of growth, the average border of the indicator in the area of 1.1215, as well as the upper one in the area of 1.1250, will act as resistance.

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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
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