EUR/USD: plan for the European session on April 24. The euro remains under pressure before the reports from the IFO

To open long positions on EURUSD, you need:

The repeated test of the level of 1.1207 will lead to a breakdown and a further decline of the euro, so buyers should better look at long positions after updating the weekly minimum around 1.1185 or at a rebound from larger support of 1.1149. The main task of the bulls will be the return and consolidation above the resistance of 1.1227, which can only happen if there are good reports on Germany from the IFO Institute. In this scenario, we can expect an update of weekly highs around 1.1247 and 1.1262, where I recommend taking profits.

To open short positions on EURUSD, you need:

The bears need to return to the support level of 1.1207, which will increase the pressure on the euro and lead to another wave of decline with the update of the lows in the area of 1.1185 and 1.1149, where I recommend taking profits. In case of euro growth in the first half of the day, bad data for Germany will allow forming a false breakdown in the resistance area of 1.1227, which will also be a signal to sell EUR/USD. In a different scenario, it is best to open short positions on a rebound when returning to the highs of 1.1247 and 1.1262.

Indicator signals:

Moving Averages

Trading is conducted below 30 and 50 moving averages, which indicates the preservation of the bearish nature of the market.

Bollinger Bands

In the event of a decline in the euro, support will be provided by the lower bound of the Bollinger Bands indicator around 1.1207, the breakdown of which will lead to a strong sale of EUR/USD. The growth will be limited by the upper limit of the indicator at 1.1235.

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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
The material has been provided by InstaForex Company - www.instaforex.com

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