EUR/USD: plan for the European session on June 6. GDP data will determine the tone of Mario Draghi's statements

To open long positions on EURUSD you need:

Today, a decision on the interest rate in the eurozone will be published, as well as data on GDP, which may put pressure on the euro. Buyers need to climb to the resistance level of 1.1241, and only with a good report on economic growth rates can we be able to expect EUR/USD to rise to the highs of 1.1273 and 1.1304, where I recommend taking profits. In the event of a further decline, before the ECB's decision and against the background of profit taking, it's best to return to long positions in the euro on a false breakdown from support at 1.1200 or rebound from a low of 1.1163.

To open short positions on EURUSD you need:

An unsuccessful breakthrough and a return below the level of 1.1271 during the release of data on the state of the eurozone economy will be the first signal to open short positions in the euro, the purpose of which will be a support of 1.1200, where I recommend taking profits. However, the main weekly task will be to return to a low of 1.1163, but this will only happen if European Central Bank President Mario Draghi speaks negatively. If the growth scenario is above 1.1241 in the first half of the day, you can take a closer look at short positions from a resistance of 1.1273 or sell the euro to rebound from a high of 1.1304.

Indicator signals:

Moving averages

Trade is conducted below 30 and 50 moving averages, which indicates that pressure on the euro remains.

Bollinger bands

A break of the middle border of the indicator in the area of 1.1241 may lead to an increase in the euro in the first half of the day, while the lower limit in the 1.1200 area will support the decline in the pair.

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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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