EUR / USD: plan for the US session on October 26. Data on the US economy may limit the fall of the euro
To open long positions on EUR / USD, you need:
Euro buyers failed to return to the important resistance level of 1.1387, which I paid attention to in the morning review, which led to a further sale. Currently, the emphasis is on support level of 1.1337. The formation of a false breakdown in this range, after the release of data on the US economy, with confirmation of the divergence on the MACD indicator, will lead to an increase in EUR / USD in the second half of the day and return the pair to the resistance area of 1.1387, where I recommend fixing the profits. In the case of the euro falling below the support level of 1.1337, it is best to return to long positions from new lows to rebound around 1.1300 and 1.1251.
To open short positions on EUR / USD, you need:
Sellers formed a false breakdown in the morning resistance area of 1.1387, which led to a further decline in the euro. At the moment, the target is the support area of 1.1337, the breakdown of which will open a direct road to the August lows area to the levels of 1.1300 and 1.1251, where I recommend fixing the profits. In the case of weak data on the growth of the US economy, and the formation of a false breakdown at 1.1337, the euro is best sold to rebound from resistance of 1.1387 and 1.1429.
Trade is conducted under the 30- and 50-day average, which indicates the formation of a downward trend in the euro.
The lower limit of the Bollinger Bands indicator is located in the area of 1.1337 and can support the euro. Its breakdown will lead to a larger sale of EUR / USD. The upper limit around 1.1387 limits the upside potential of the euro.
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