23.09.201908:03 Forex Analysis & Reviews: EUR/USD: plan for the European session on September 23. Manufacturing activity data may put pressure on the euro and lead to a breakdown of 1.0997

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:

Euro buyers managed to pull the market off the low of the week on Friday amid a report on investor confidence, which slightly increased, but the general background remains negative. Today's report on activity in the manufacturing sector of the eurozone countries may continue to pull down the pair. Therefore, it is best to consider long positions after correction and the formation of a false breakdown in the support area of 1.0997, and buy EUR/USD immediately for a rebound from a low of 1.0960. The main goal will be to return and consolidate above the resistance of 1.1034, which will allow the bulls to update a larger range of last week's resistance in the area of 1.1067-1.1074, where I recommend taking profits.

To open short positions on EURUSD you need:

Weak production activity and the formation of a false breakdown in the resistance area of 1.1034, where the moving averages are concentrated, can lead to the formation of a new downward wave in EUR/USD, which will lead to a test of last week's low at 1.0997 and its breakthrough. Only such a scenario will increase pressure on the euro and pull down the pair to a support of 1.0960 and 1.0927, where I recommend taking profits. If the data on the eurozone does not come out as bad as expected, then the bulls can return to their resistance at 1.1034. In this case, it is best to consider new short positions in EUR/USD for a rebound from last week's resistance range in the region of 1.1067-1.1074.

Signals of indicators:

Moving averages

Trading is conducted below 30 and 50 moving averages, which indicates a slight superiority of euro sellers.

Bollinger bands

A break of the lower boundary of the indicator at 1.1005 will increase pressure on the euro, while the upper boundary at 1.1040 will limit the upward potential in the morning.

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.