27.07.202012:27 Forex Analysis & Reviews: EUR/USD: plan for the American session on July 27

To open long positions on EURUSD, you need:

In the first half of the day, I paid attention to purchases in the support area of 1.1682, which happened. Let's look at the deal in more detail. Good data on the German business environment, which improved significantly in July this year, returned demand for the euro in the first half of the day after a downward correction to the level of 1.1682. If you look at the 5-minute chart, you will see how the bulls start active actions at the first test of this range in the continuation of the upward trend. Now their target is the resistance of 1.1718. A break and consolidation above this range will lead to a new wave of euro growth in the area of the maximum of 1.1750. The longer-term goal will be the area of 1.1802, where I recommend fixing the profits. If there is no rapid growth above the resistance of 1.1718, it is best to abandon the build-up of long positions in the area of this maximum and again wait for a correction to the support of 1.1682. However, it should be understood that this level has already worked itself out, so larger players will act when the EUR/USD falls to the area of the minimum of 1.1640, where the moving averages are currently held. From there, you can open long positions immediately for a rebound in the expectation of a correction of 30-40 points within the day.

To open short positions on EURUSD, you need:

The bears have already made an unsuccessful attempt to break below the support of 1.1682, and now, according to the chart, their task will be to protect the resistance of 1.1718. As in the first half of the day, selling even at current highs against the trend is not a good idea. Only the formation of a false breakout in the resistance area of 1.1718 after an unsuccessful attempt by the bulls to gain a foothold above this level closer to the middle of the American session will signal the opening of short positions. However, the main goal of the bears is to return EUR/USD to the support level of 1.1682, fixing under which will be an additional sell signal, which will push the pair to the area of 1.1640, where I recommend fixing the profits. If sellers do not become active in the area of 1.1718, then it is best to consider selling the euro when reaching new local highs in the area of 1.1750 or sell immediately for a rebound from the resistance of 1.1802 in the calculation of a correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily moving averages, which indicates further growth of the euro on the trend.

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

A break in the upper limit of the indicator around 1.1735 will strengthen the demand for the euro. A breakdown of the average border in the area of 1.16820 will lead to a larger downward correction of the pair.

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
• Non-profit traders are speculators, such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet certain requirements.
• Long non-commercial positions represent the total long open position of non-commercial traders.
• Short non-commercial positions represent the total short open position of non-commercial traders.
• Total non-commercial net position is the difference between short and long positions of non-commercial traders.