EUR/USD: plan for the European session on August 7. Euro buyers remain in the game after a slight correction to the support

To open long positions on EURUSD you need:

Buyers of the European currency managed to keep the market on their side after yesterday's downward correction to a major support area of 1.1171, however, another series of statements by Federal Reserve representatives on the need to further study the interest rate situation in the United States has returned demand for EUR/USD. At the moment, the buyers' priority is to break through and consolidate above a resistance of 1.1217, from which a downward movement on a false breakdown had occurred yesterday. This will allow us to continue the upward trend, which will lead to renewal of highs in areas of 1.1263 and 1.1289, where I recommend taking profits. If pressure on the euro returns once again, after weak data on industrial production in Germany, one can consider new long positions from the same low of 1.1171, on a false breakdown, or immediately buy the euro on a rebound from the larger support of 1.1143, where a new lower limit of the upward channel will be formed.

To open short positions on EURUSD you need:

At the moment, a good signal to open short positions will be the formation of a false breakdown in the resistance zone of 1.1217, which can be formed after a weak report on industrial production in Germany. This will return a downward impulse to the pair, which will lead to updating a larger support level 1.1171, a breakdown of which will strengthen the bearish momentum and allow an update of of 1.1143, where I recommend taking profit. If bulls break above the resistance of 1.1217 in the morning, then in this case it is best to look for short positions by rebounding from a new high of 1.1263, or slightly higher - from a resistance of 1.1289.

Signals of indicators:

Moving averages

Trading is conducted above 30 and 50 moving average, which indicates an upward correction in the pair.

Bollinger bands

In case the euro decreases, the lower border of the indicator in the area of 1.1175 will provide support. A break of the upper boundary in the area of 1.1220 will strengthen the demand for the euro.

analytics5d4a65a8880fb.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