To open long positions for EURUSD, it is required:

The Fed rate hike only led to a strengthening of the euro in the afternoon, but it is clear that today buyers are leaving the market quickly. I recommend to consider long positions in the euro after the formation of a false breakout in the support area of 1.1687 or on a rebound from the new low of 1.1654. It is too early for bulls of the EUR/USD pair to panic. Their main task before the end of the week will be to return to the resistance level of 1.1726, which will lead to an increase in demand for the euro and the renewal of the resistance of 1.1763 and 1.1802, while maintaining an upward trend.

To open short positions for EURUSD, it is required:

Sellers coped with the first task of securing below the area of 1.1726. An unsuccessful attempt to return to this level with a false breakout in the first half of the day will be a good signal for opening short positions in the EUR/USD and a further decline in the area of 1.1687 and 1.1654. The consolidation below the level of 1.1687 will indicate a complete reversal of the upward trend in the euro. In case of growth above 1.1726 in the first half of the day, sales can be returned immediately to a rebound from 1.1763.

Important attention should be paid today to the speeches of the ECB President and the Fed Chairman.

Indicator signals:

Moving averages

The 30-day moving average changes its downward direction and gradually separates from the level of the 50-day average, which indicates the formation of a downward trend in the market.

Bollinger Bands

Please note that the sharp fall of the euro did not affect the Bollinger Bands indicator, which can return the EUR/USD pair back to the side channel 1.1726-1.1800 by the end of the day, if the situation does not change.

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