EUR/USD: plan for the European session on July 8. US labor market data hit the euro, but a further decline is questionable

To open long positions on EURUSD you need:

Good data on the US labor market caused the euro to fall on Friday. At the moment, buyers will count on the formation of a false breakdown in the area of Friday's low of 1.1207 with confirmation of divergence on the MACD indicator. In such a scenario, I recommend that you consider long positions in euros with the main goal of breaking through and consolidating above a resistance of 1.1239, from where you can expect a 1.1268 high update and take profits on long positions. If the bears break through support at 1.1207, then new purchases in EUR/USD should be considered as a rebound from lows of 1.1182 and 1.1161.

To open short positions on EURUSD you need:

Today, bears will try to break through below a support for 1.1207, however, it is necessary to take into account the likelihood of a divergence on the MACD indicator, which may limit the downward movement in the first half of the day. A more optimal scenario for selling the euro would be a false breakdown in the resistance area of 1.1239, but I recommend that you open short positions immediately to rebound only from a high of 1.1268. If the bears achieve consolidation below the low of 1.1207, then their next target will be the support areas of 1.1182 and 1.1161.

Indicator signals:

Moving averages

Trade is conducted below 30 and 50 moving averages, which indicates a further decline in the market with the trend.

Bollinger bands

Failure to consolidate above the upper boundary of the indicator in the area of 1.1242 will be a signal to sell the European currency, and a breakdown of the lower boundary in the area of 1.1207 will only increase the pressure on 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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