To open long positions on EURUSD, you need:
It is expected that the fourth test of the support level of 1.1066 led to a breakdown of the range and a further decline in the EUR/USD pair. At the moment, the whole focus will be shifted to the speech of Fed Chairman Jerome Powell, who can set the direction of the pair at the end of the week. If we are not talking about interest rates, or Powell will avoid this topic, the decline in the euro will likely continue. In this case, customers can only rely on the support test of 1.1028. I recommend opening long positions in EUR/USD immediately for a rebound after updating the minimum of 1.0990. The main task of the bulls for the second half of the day will be to return to the resistance of 1.1066, which will lead to the closure of several short positions and to an upward correction to the maximum area of 1.1104, where today I recommend taking the profit.
To open short positions on EURUSD, you need:
Bears coped with the morning task and broke below the level of 1.1066. While trading will be conducted under this range, the pressure on the euro will remain, which will allow us to count on updating the lows in the area of 1.1028 and 1.0990. We can expect a larger EUR/USD decline if the Fed Chairman repeats his statements that the July decrease in interest rates was only corrective in the middle of the cycle. If the bulls manage to drag the pair to the level of 1.1066 in the afternoon, it is best to consider short positions again for a rebound from the resistance of 1.1104 and still higher – from a maximum of 1.1130.
Trading is below 30 and 50 moving averages, which indicates the predominance of the bearish market.
In the case of an upward correction in the second half of the day, the upper limit of the indicator around 1.1100 may limit the growth of the euro.
Description of indicators
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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