27.08.202013:37 Forex Analysis & Reviews: EUR/USD: plan for the American session on August 27

To open long positions on EURUSD, you need:

Due to the lack of important fundamental statistics today, the bulls did not even attempt to break through the resistance of 1.1842, gradually leaving the market and preparing for an important speech by Fed Chairman Jerome Powell. It will take place in the afternoon. There were also no signals for entering the market. From a technical point of view, only the nearest support level has changed, which I had to revise after the recent downward movement of the euro. In the afternoon, a report on the number of initial applications for unemployment benefits in the United States is expected. If it turns out to be better than forecasts – it will give confidence to buyers of the US dollar. However, I do not recommend rushing to open long positions. It is best to wait for the pair to decline to the major support of 1.1774, which was formed yesterday. However, only the formation of a false breakout there will be a signal to open long positions in the expectation of recovery to the maximum 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 above 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 activity of buyers in the support area of 1.1774, it is best to postpone purchases until the minimum is updated in the area of 1.1714, counting on correction of 20-30 points within the day.

To open short positions on EURUSD, you need:

Sellers are gradually pushing the euro to the support of 1.1774 and it is a pity that we could not wait for the formation of a false breakout in the resistance area of 1.1842. Only a consolidation below 1.174 forms a good entry point into short positions in the expectation of continuing the downward correction to the area of the previous week's minimum of 1.1714, where I recommend fixing the profits. The longer-term goal will be in support of 1.1648, which will decline only if there is an adequate response to the speech of the Fed Chairman. 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 or if this area is quickly broken, the market may switch to the side of buyers. In this case, I recommend selling EUR/USD immediately for a rebound only from the maximum of 1.1884, counting on correction of 20-30 points within the day, or even higher, from a major resistance of 1.1920.

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 border of the indicator around 1.1808 should lead to the formation of pressure on the European currency. Breaking the upper limit of the indicator in the area of 1.1845 will lead to a new wave of euro growth.

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.