EUR/USD: plan for the European session on April 3. The euro has slightly strengthened, returning to the last side channel
To open long positions on EURUSD you need:
Yesterday's weak US data once again led to the strengthening of the US dollar, but then euro buyers rejuvenated. In the Asian session, the bulls managed to return to the resistance level of 1.1215, and as long as trade is conducted above this range, we can expect the upward correction to continue, which could lead to an update of highs around 1.1244 and 1.1269, where I recommend taking profits. In case of a re-return scenario below the support level of 1.1215 in the first half of the day, long positions can be returned after the test of a low of 1.1186 or to rebound from a larger support of 1.1149.
To open short positions on EURUSD you need:
The bears are required to return to the support level of 1.1215, and weak data on the service sector in the eurozone can provide support. In this scenario, the pressure on the euro will increase, which will lead to an update of yesterday's low around 1.1186 and a possible test of the area of 1.1149, where I recommend taking profits. Under the scenario of the EUR/USD's further upward correction, you can count on selling in case of a false breakdown in the resistance area of 1.1244 or on a rebound from a more significant level of 1.1269.
Trade is conducted just above the 30-day and 50-day moving averages, which indicates a slight advantage for euro buyers.
In case the euro declines in the morning, support will be provided by the lower limit of the Bollinger Bands indicator near 1.1186.
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