EUR / USD pair: plan for the European session on November 1. Time for a small correction
To open long positions on EUR / USD pair, you need:
The European currency recovered slightly after the update of the next monthly lows after the publication of yesterday’s statistics for the eurozone. While the trade is conducted above the intermediate support of 1.1330, the demand for the euro will remain and both the breakthrough and consolidation above the resistance of 1.1360 will lead to a larger upward correction in the area of 1.1388 and 1.1421, where fixing profits are recommended. If euro buyers again lose support for 1.1330, it is best to return to long positions on a false breakdown around 1.1300 or to rebound from a new minimum of 1.1250.
To open short positions on EUR / USD pair, you need:
Sellers need to form a false breakdown at the resistance level of 1.1360 or break through the support of 1.1330, which will lead to the continuation of the downward wave formation in EUR / USD pair with the exit to the lows of 1.1300 and 1.1251, where taking profits are recommended. In the case of growth above the resistance of 1.1360, short positions return to the rebound from the level of 1.1388.
Trade is conducted between the 30- and 50-day average, which indicates the formation of the lateral nature of the market with a possible upward correction.
A break of the upper border of the Bollinger Bands indicator in the area of 1.1355 could lead to a larger increase in the euro. In case of reduction, support will be provided by the lower limit, which coincides with the support of 1.1300.
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