EUR/USD: plan for the American session on October 9th. The bulls have regained the level of 1.0975, but now we need to hold

To open long positions on EURUSD, you need:

Before the publication of the minutes of the US Federal Reserve System and another speech by Jerome Powell, traders took advantage of the moment and recorded profits, after yesterday’s small growth of the US dollar. The absence of weak fundamental statistics, against the background of the expected return to the stimulation of the US economy by the Fed, allowed to regain the level of 1.0975, which is now the main focus. The formation of a false breakdown on it in the second half of the day will be a signal for further purchases of the euro, the purpose of which will be a maximum of 1.1005, as well as a larger resistance level of 1.1033, where I recommend taking the profits. If the pair returns to the level of 1.0975, just above which the upper limit of the new downward channel passes, it is best to consider long positions from the lows of 1.0943 and 1.0905.

To open short positions on EURUSD, you need:

The bears need to return to the support level of 1.0975, as only after this can we expect the continuation of the downward trend with a breakthrough of the minimum of 1.0943 and an update of the larger area of 1.0905, where I recommend taking the profits. However, many market participants expect the publication of the minutes of the September meeting of the Federal Reserve, from which it will be possible to conclude whether the central bank will lower rates again this year or not. In this regard, the demand for the euro may continue. In this scenario, it is best to consider new short positions after forming a false breakdown at the maximum of 1.1005 or sell EUR/USD immediately on the rebound from the resistance of 1.1033.

Indicator signals:

Moving Averages

Trading is just above the 30 and 50 moving averages, but it is too early to talk about changing the trend.

Bollinger Bands

In the case of a decline in the euro, the indicator’s midline will support the area around 1.0965, and you can buy immediately for a rebound from the lower border in the area of 1.0943.

analytics5d9dc9bd36326.png

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