Relevance up to 09:00 UTC–8
To open long positions on EURUSD, you need:
Released in the first half of the day, data on the German import price index put pressure on the euro, as though they were better than economists’ forecasts, but confirmed the problems with growth. The report showed that import prices fell in October this year by 0.1% after rising by 0.6% in September. Buyers will again have to defend the support level of 1.1005, which I paid attention to in the morning review. It is best to open long positions from it only after the formation of a false breakdown, which the bulls are now trying to do. But you can buy EUR/USD immediately on the rebound from the larger support area of 1.0989. The main task of the bulls in the second half of the day will be a return to the resistance of 1.1031, where I recommend taking the profits. However, this can be done under the condition of weak fundamental statistics, the release of which is scheduled for the American economy in the second half of the day. Particular attention will be drawn to the report on US GDP for the 3rd quarter of this year, where growth is expected to be 1.9%. Weaker data will again test the resistance of 1.1031, a breakthrough of which will lead to an update of the maximum of 1.1059.
To open short positions on EURUSD, you need:
On the contrary, good indicators on the US economy will allow bears to increase their short positions in EUR/USD. The breakthrough of the support of 1.1005, which was not possible to do once again during the European session, will lead to another wave of sales of EUR/USD with the update of the lows in the area of 1.0989 and 1.0972, where I recommend taking the profits. In the absence of activity at the level of 1.1005, short positions can be returned only after the formation of a false breakdown in the resistance area of 1.1031 or sell the euro immediately on the rebound from the maximum of 1.1059.
Trading is below the 30 and 50 moving averages, which indicates a further probability of a decline in the euro.
Breaking the lower border of the indicator around 1.1005 will lead to a larger sell-off of the euro. Growth will be limited to the upper level of the indicator around 1.1025.
Description of indicators
- Moving average (moving average determines the current trend by smoothing volatility and noise). Period 50. The chart is marked in yellow.
- Moving average (moving average determines the current trend by smoothing volatility and noise). Period 30. The chart is marked in green.
- MACD indicator (Moving Average Convergence/Divergence – convergence/divergence of moving averages). Fast EMA period 12. Slow EMA period 26. SMA period 9.
- Bollinger Bands (Bollinger Bands). Period 20.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Performed by Ruben Watson,
InstaForex Group © 2007-2019
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