EUR/USD: plan for the European session on July 3. Composite PMI data could move the euro

To open long positions on EURUSD you need:

The situation has not changed in comparison with yesterday's forecast for the second half of the day. The upward correction is still limited by the resistance of 1.1307, and the bulls' task remains the same for the time being. A breakthrough and consolidation above this range will lead to further growth of EUR/USD with an update of a high of 1.1338 and 1.1364, where I recommend taking profits. If the downward movement continues further, then it is best to return to long positions on a false breakdown from the support of 1.1275, or to rebound from the new monthly low near 1.1239.

To open short positions on EURUSD you need:

Further movement in the morning will depend on reports on the services sector and composite PMI indexes of the eurozone countries. In the event of a disappointing data scenario, another false breakout in the area of 1.1307 will be a signal to continue the downward trend, which will push EUR/USD to a low of 1.1275 and will lead to an update of the larger support at 1.1239, where I recommend taking profits. If the demand for the euro returns, then the upward potential will be limited by the resistance of 1.1338, however, it is best to open short positions to rebound immediately in the resistance area of 1.1364.

Indicator signals:

Moving averages

Trade is conducted below 30 and 50 moving average, which indicates the formation of a bearish market.

Bollinger bands

In case of an upward correction, the upper limit of the indicator in the area of 1.1310 will act as resistance.

analytics5d1c4a99eb4b4.png

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