12.08.202013:16 Forex Analysis & Reviews: EUR/USD: plan for the American session on August 12

To open long positions on EURUSD, you need:

In the first half of the day, the European currency calmly approached the resistance of 1.1773, from which the first entry point into short positions can be formed in the hope of continuing the downward correction. Let's look at the 5-minute chart. I have highlighted an area on the chart that will be actively fought for. If buyers manage to gain a foothold in the second half of the day above the level of 1.1773, then you can open long positions in the expectation of continuing the upward trend. However, much will depend on what kind of report will be released on inflation in the US. If the data turns out to be worse than economists' forecasts, we can expect an update to the maximum of 1.1843. A longer-term goal will be the area of 1.1906, where I recommend fixing the profits. If the pressure on the euro returns, and the bulls miss 1.1773, then it is best to postpone purchases until the next update of the day's minimum in the area of 1.1714, provided that a false breakout is formed there. Otherwise, it is best to buy EUR/USD only from the support of 1.1648 based on a correction of 30-40 points within the day.

To open short positions on EURUSD, you need:

For sellers, the moment of truth is coming. Their main task is to prevent a breakout and consolidation above the resistance of 1.1773, which the pair has now reached. The formation of a false breakout there with a return to this level after the US inflation data will be a direct signal to open short positions in the expectation of a decrease to the minimum of the day in the area of 1.1714. There will again be an active confrontation between buyers and sellers. It should also be understood that the upper border of the downward correction channel passes just above the area of 1.1773, the break of which may be evidence of the resumption of the upward trend. If the pair grows above 1.1773, I recommend returning to short positions only for a rebound from the maximum of 1.1843, counting on a correction of 30-40 points within the day. A break of the minimum of 1.1714 will quickly collapse EUR/USD to the support of 1.1648, where I recommend fixing the profits.

Signals of indicators:

Moving averages

Trading is just above the 30 and 50 daily moving averages, which indicates another attempt by the bulls to take control of the market.

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

Breaking the upper limit of the indicator in the area of 1.1773 will lead to a new wave of euro growth. If the pair declines, the lower border of the indicator in the area of 1.1714 will provide support.

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 speculative traders, 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.