10.10.201907:51 Forex Analysis & Reviews: EUR/USD: plan for the European session on October 10. Fed minutes did not clarify the situation, but demand for the euro returned in anticipation of a US-China deal. Breakthrough at 1.1005 will provide an influx of new buyers

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

To open long positions on EURUSD you need:

Yesterday's minutes of the US Federal Reserve did not clarify the situation regarding a further interest rate cut, which led to a slight strengthening of the euro today at the Asian session. Optimism regarding the US-China trade deal also contributes to higher demand for the euro. Today, in the morning, buyers need to keep the level of 1.0975. The formation of a false breakdown on it will be the first signal to open long positions in the hope of updating the high in the area of 1.1005 and its breakthrough, which will lead to new levels 1.1033 and 1.1067, where I recommend taking profits. In case the euro falls to the level of 1.0975 after the publication of the minutes of the European Central Bank, one can look at long positions on the test of the lower boundary of the side channel near 1.0943, or buy immediately on the rebound from the low of 1.0905.

To open short positions on EURUSD you need:

Sellers will expect the formation of a false breakdown at the upper boundary of the side channel at 1.1005, but a more important task will be to return to the intermediate support level of 1.0975, under which the pressure on the pair will increase, which will lead to an update of the low of 1.0943. However, we can talk about the resumption of the bearish trend only after breaking 1.0943 and updating support at 1.0905, where I recommend taking profits. The publication of the minutes of the European Central Bank may lead to the euro's growth above the resistance of 1.1005, as well as good news on the US-China deal. In this scenario, it is best to consider short positions in EUR/USD for a rebound from a high of 1.1033.

Signals of indicators:

Moving averages

Trade is conducted in the region of 30 and 50 moving average, which indicates the lateral nature of the market.

Bollinger bands

Volatility is very low, which does not provide signals on entering the market.

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

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.