26.08.202014:13 Forex Analysis & Reviews: EUR/USD: plan for the American session on August 26

To open long positions on EURUSD, you need:

Due to the lack of important fundamental statistics this morning, trading was mostly sideways with fairly low volatility. From a technical point of view, nothing has changed, since none of the levels planned for the morning have been tested. In the afternoon, a report on the volume of orders for long-term goods is expected, which may slightly shake the market. I do not recommend rushing to open long positions. It is best to wait for the pair to decline to the major support of 1.1787 since only the formation of a false breakout there will be a signal to open long positions in the expectation of recovery to the maximum area of 1.1842, where you can observe the first profit-taking. However, an equally important task for the bulls will be a breakout and consolidation at the level of 1.1842, since only this will lead to a complete reversal of the downward correction and open the way to the maximum of 1.1884, where I recommend fixing the profits. If there is no buyer activity in the support area of 1.1787, it is best to postpone purchases until the last week's low is updated in the area of 1.1755 or open long positions immediately for a rebound from the support of 1.1714 in the expectation of correction of 20-30 points within the day, since the market is still under the control of bears.

To open short positions on EURUSD, you need:

Sellers are gradually pushing the euro to the support of 1.1787, but only a consolidation below this level forms a good entry point into short positions in the hope of continuing the downward correction to the area of last week's minimum of 1.1755, where I recommend fixing the profits. The longer-term goal will be the support of 1.1714. The triangle formed in the morning on smaller timeframes was also played in the direction of euro sellers. If the pair grows in the second half of the day, it is best to sell EUR/USD only after forming a false breakout at 1.1842, as it was yesterday. If there is no activity on the part of bears, the market can quickly switch to the side of buyers. In this case, I recommend selling EUR/USD immediately on the rebound from the maximum of 1.1884, counting on correction of 20-30 points within the day.

Signals of indicators:

Moving averages

Trading is just below the 30 and 50 daily moving averages, which indicates that the bears are trying to continue the downward correction of the pair.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger Bands

A break in the lower limit of the indicator around 1.1800 should lead to the formation of pressure on the European currency. Growth will be limited by the upper level of the indicator in the area of 1.1842.

Description of indicators

• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
• MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
• Bollinger Bands (Bollinger Bands). Period 20
• Non-profit traders are speculators, such as individual traders, hedge funds, and large institutions that use the futures market for speculative purposes and meet certain requirements.
• Long non-commercial positions represent the total long open position of non-commercial traders.
• Short non-commercial positions represent the total short open position of non-commercial traders.
• Total non-commercial net position is the difference between short and long positions of non-commercial traders.