EUR / USD plan for the European session on March 6. Excellent ISM index returns US dollar to advantage
To open long positions on EUR / USD pair, you need:
Euro buyers only temporarily stopped a downtrend yesterday and good US data led to a further fall in EUR/USD pair. At the moment, the main task of the bulls is to return to the resistance level of 1.1310, fixing on which can lead to an upward correction in the area of 1.1337, where I recommend fixing the profit. Given that no fundamental statistics for the Eurozone are expected today, it is likely that pressure on the euro will continue. In this scenario, it is best to expect to open long positions on the rebound from the support of 1.1279 and 1.1257.
To open short positions on EUR / USD pair, you need:
Despite the fact that the downward trend in the euro gradually slows down while trading is below 1.1310, the pressure on the pair will continue. Moreover, an unsuccessful consolidation at this level in the first half of the day will be a direct signal for the further sale of the euro in order to update the support of 1.1279 and 1.1257, where I recommend taking profits. In case of growth above 1.1310, you can count on short positions immediately on the rebound from the resistance of 1.1337.
More details about the forecast can be found in the video review.
Trading below the 30- and 50-day moving averages, which indicates the advantage of euro sellers.
In case of further decline, support will be provided by the lower limit of the Bollinger Bands indicator in the region of 1.1279. In the case of an upward correction, you can sell the euro on the rebound from the upper boundary of the indicator in the area of 1.1330.
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 20The material has been provided by InstaForex Company - www.instaforex.com