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04.03.202007:18 Forex Analysis & Reviews: EUR/USD: plan for the European session on March 4. Fed lowers rates, euro forgets to grow. Buyers have problems with 1.1190

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To open long positions on EURUSD you need:

Yesterday's unscheduled decision by the Federal Reserve to lower the interest rate to 1.25% led only to a small increase in the euro, which ended quickly, as a result of which the pair returned to resistance of 1.1190, below which trade is now ongoing. In order to maintain the upward trend, the main task of the bulls in the first half of the day will be to break and consolidate above the resistance of 1.1190, which will cause the euro to grow to the highs of 1.1239 and 1.1263, where I recommend taking profits. If the pair decreases after inconclusive data on activity in the services sector and the composite index of the eurozone, you can look at long positions after a false breakout from the level of 1.1142, or buy the euro immediately for a rebound from a low of 1.1097.

To open short positions on EURUSD you need:

The task of sellers today is to prevent the breakout of resistance of 1.1190 and the formation of a false breakout on it. The divergence on the MACD indicator continues to be worked out, which saves the chance of a downward correction of the euro in the morning. An additional signal for opening short positions will be a breakthrough and consolidation below support 1.1142, which will push the park to larger levels 1.1097 and 1.1041, where I recommend taking profits. In the scenario of a breakthrough and buyers returning resistance of 1.1190 to themselves, it is best to return to short positions only after updating the highs 1.1239 and 1.1263. But they can be expected to rebound no more than 20-30 points inside the day.

Signals of indicators:

Moving averages

Trade is conducted above 30 and 50 moving average, which indicates the likelihood that the euro could grow further. When the pair decreases under the moving average, the situation may change.

Bollinger bands

Growth will be limited by the upper indicator level at 1.1205, while support will be provided by the lower boundary in the 1.1100 area.

Exchange Rates 04.03.2020 analysis

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
Miroslaw Bawulski
Analytical expert of InstaForex
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