EUR/USD: plan for the European session on March 8. The ECB will not increase rates this year

To open long positions on EURUSD you need:

The ECB's revision regarding the timing of raising interest rates pulled down the euro. Now buyers are required to confirm divergence in the support area of 1.1170, and otherwise, it is best to rely on long positions from the lows of 1.1149 and 1.1122. The main task of the bulls will be to return and consolidate above the resistance of 1.1218, which will be extremely difficult to do. In this scenario, we can expect an upward correction in the area of resistance 1.1259 and 1.1286, where I recommend taking profits.

To open short positions on EURUSD you need:

It is best to open short positions after updating the resistance of 1.1218 or to rebound from a larger level 1.1259. The main task of the bears will be a breakthrough and consolidation in the first half of the day below the level of 1.1186, which will lead to a new wave of selling the euro in the area of a low of 1.1149 and 1.1122, where I recommend taking profits. The release of a report on the unemployment rate in the United States can confuse "all the cards," since the data is expected to turn out worse than the January ones, so I don't recommend that you rush to sell for a breakdown of support 1.1186.

Indicator signals:

Moving averages

Trading is conducted below the 30-day and 50-day moving average, which indicates the bearish nature of the market.

Bollinger bands

In case the EUR/USD further declines, support will be provided by the lower limit of the Bollinger Bands indicator in the region of 1.1149. The upward trend will be limited to the middle of the channel in the region of 1.1218, otherwise, it can be immediately sold to rebound from the upper boundary of the indicator in the area of 1.1286.

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Indicator description

  • Moving Average (average sliding) 50 days - yellow
  • Moving Average (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

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