EUR/USD: plan for the European session on February 28. Good data on inflation in the eurozone can help the euro
To open long positions on EURUSD you need:
The unsuccessful attempt to get out of the yesterday's high and to consolidate above the resistance of 1.1403 led to the formation of a new side channel in the pair. At the moment, it is best to return to long positions in the euro after a false breakdown in the support area of 1.1374 or to rebound from the lower border of channel of 1.1348, where sellers of the euro will also take profits. The main task remains the breakthrough and consolidation above the upper boundary of the channel in the area of 1.1403, which will lead to the renewal of new highs in the area of 1.1432 and 1.1459, where I recommend to lock in profits. Today, inflation data in the eurozone countries can help euro buyers, but weak performance will only increase the pressure on the EURUSD pair.
To open short positions on EURUSD you need:
Yesterday's data on the eurozone limited the growth of the euro. As long as trading continues below the upper border of the side channel of 1.1403, pressure on EUR/USD will continue, and a breakthrough with consolidation below the middle of the channel in the region of 1.1374 will lead to an update of the low of 1.1348, where I recommend taking profits. Under the scenario of the euro's re-growth above the resistance of 1.1403, after good inflation reports, it is best to consider new short positions to rebound from a high of 1.1432 and 1.1459.
Trade is conducted in the area of 30-day and 50-day moving averages, which indicates market uncertainty with a slight advantage.
Bollinger Bands indicator volatility is very low, which does not provide signals on market entry.
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