08.07.202012:44 Forex Analysis & Reviews: EUR/USD: plan for the American session on July 8

To open long positions on EURUSD, you need:

In the first half of the day, euro buyers again began to actively protect the support of 1.1267, from which I recommended opening long positions after forming a false breakout in the continuation of the upward trend. If you look at the 5-minute chart, you will see how the bulls quickly rebuffed the bears, trying to resume the growth of the euro, however, this did not lead to a larger upward trend. Apparently, yesterday's data, and the lack of fundamental statistics today, affect the desire of bulls to increase long positions. In this regard, the technical picture in the pair has not changed. At the moment, the task of the bulls is to protect the support of 1.1267, since its breakdown will lead to a break in the upward trend formed on July 1 this year. I recommend opening long positions from this range only after a false breakout is formed, but as long as the trade is above 1.1267, you can expect the bull market to continue. However, given the fact that important data is not published today, it is likely that the euro will continue to remain under pressure against the background of yesterday's reports on Germany and the forecasts of the European Commission. When the support breaks 1.1267, it is best to wait for the update of the new low of 1.1233 and open long positions from it immediately for a rebound in the expectation of a correction of 20-25 points within the day. Larger bulls will prefer to wait for the update of the area of 1.1233. An equally important task will be to return EUR/USD to the resistance level of 1.1305, fixing above which will be an additional signal to buy, which can lead to the maximum of the week in the area of 1.1345, where I recommend fixing the profits.

To open short positions on EURUSD, you need:

The task of sellers of the European currency is to break through and consolidate below the support of 1.1267, which the bulls are so actively protecting. A break of this level will lead to the formation of a new downward trend, which can bring the European currency to a minimum of 1.1233, and also lead to an update of the support of 1.1193, where I recommend fixing the profits. Gloomy data on the growth rate of the German economy and yesterday's forecasts of the European Commission are still "fresh in the memory of traders", which discourages all desire to be active at weekly highs. Another good point for entering short positions will be the formation of a false breakout in the resistance area of 1.1305. I recommend selling EUR/USD immediately for a rebound only after updating the weekly maximum in the area of 1.1345, counting on a correction of 20-25 points within the day.

Signals of indicators:

Moving averages

Trading is conducted in the area of 30 and 50 daily moving averages, which indicates problems for euro buyers, who were unable to continue the bullish momentum.

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

Breaking the lower border of the indicator in the area of 1.1265 will increase pressure on the euro. Growth above the upper limit in the 1.1300 area will lead to bullish momentum.

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