05.08.201908:15 Forex Analysis & Reviews: EUR/USD: plan for the European session on August 5. German and eurozone PMI data will support the euro, but demand is unlikely to be strong

To open long positions on EURUSD you need:

Euro buyers, amid weak data on the US labor market, continued to pull up the pair last Friday, reaching large resistance levels, which I paid attention to in my forecast. Currently, good PMI reports that are in fairly good condition can provide further support. The formation of a false breakdown in the support area of 1.1113 will be the first signal to open long positions, the purpose of which will be the resistance of 1.1152, where I recommend to take profits. When the scenario of pulling down the euro under the level of support 1.1113, for purchases it is best to look at the test of a larger support of 1.1079, where bulls will try to build the lower boundary of the new ascending channel.

To open short positions on EURUSD you need:

Sellers urgently need to return to the area below the support level of 1.1113, which was missed on Friday. Only in such a scenario will the pressure on the euro return, which will lead to a deeper downward correction in the area of a low of 1.1079 and 1.1054, where I recommend taking profits. If reports on the service industry turn out to be better than economists' forecasts, the euro may continue to grow. In this case, it is best to rely on large sellers to return to the market after the formation of a false breakdown in the support area of 1.1152, or on a rebound from a larger resistance of 1.1186.

Indicator signals:

Moving averages

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

Bollinger bands

If the euro declines, support will be provided by the lower limit of the indicator in the 1.1090 area.

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