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02.04.2020 02:19 PM
EUR/USD: plan for the US session on April 2. Bears continue to control the market and push the euro to a minimum of 1.0880

To open long positions on EURUSD, you need:

In my morning review, I paid attention to sales after the formation of a false breakout in the resistance area of 1.0955, which happened. This is clearly visible on the 5-minute chart. Weak data on eurozone producer prices, which declined much more than expected by economists, led to an update of daily lows and the pair remaining in a downward price channel. The task of euro buyers remains the same. A break above the resistance of 1.0955 is needed, which was not possible in the first half of the day. If the bulls manage to gain a foothold in this range, and this can only happen after very bad data on the US labor market, the demand for EUR/USD will increase, which will lead to an update of the resistance of 1.1033, where I recommend fixing the profits. However, a more rational option would be to buy on the decline of the euro in the area of large support of 1.0880, provided that a false breakout is formed there, or immediately on the rebound from the minimum of 1.0790.

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To open short positions on EURUSD, you need:

The bears achieved the formation of a false breakout in the resistance area of 1.0955 and continued to push the pair further down. The immediate goal is to update the support level of 1.0880, where buyers can try to stop the bearish trend. However, the longer-term goal will be the lows in the area of 1.0790 and 1.0718, where I recommend fixing the profits. Data on the state of the US labor market can be interpreted by the market in different ways, so in the scenario of growth of the pair in the second half of the day, you can still return to short positions at a false breakout in the resistance area of 1.0955, or sell EUR/USD immediately on the rebound from a large resistance of 1.1033.

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Signals of indicators:

Moving averages

Trading is below the 30 and 50 daily moving averages, which indicates a further decline in the euro in the short term.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger Bands

In the case of an upward correction in the second half of the day, the upper border in the area of 1.0965 will act as a resistance. Breaking the lower border of the indicator will only increase the pressure on the euro.

Description of indicators

  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
  • MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
  • Bollinger Bands (Bollinger Bands). Period 20
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