02.09.202014:51 Forex Analysis & Reviews: EUR/USD: plan for the American session on September 2

To open long positions on EURUSD, you need to:

A sharp decline in retail trade in Germany, together with yesterday's bearish momentum in the European currency, quickly led to a breakdown of the support of 1.1887, below which I recommended opening short positions. If you look at the 5-minute chart, you will see how the rapid breakdown of the level of 1.1887 resulted in another sale of the European currency in the support area of 1.1849, from where I advised you to open long positions for a rebound, which happened. Currently, while a false breakout is formed, and trading is conducted above the level of 1.1849, you can count on the return of the European currency to the resistance area of 1.1887. But only fixing above this level forms a signal for a new opening of long positions in the continuation of growth to the maximum of 1.1937, where I recommend fixing the profits and where the moving averages pass. If the euro falls further below the level of 1.1849, it is best to postpone long positions until the 1.1812 low is updated or buy EUR/USD for a rebound from the support of 1.1764 in the expectation of a correction of 30-40 points within the day.

To open short positions on EURUSD, you need to:

Sellers of the euro are still able to keep the market under their control and the next task is to return the pair to the support of 1.1849. Another test of this level will certainly lead to a breakdown, which will form a signal to open short positions in the expectation of further movement of EUR/USD to the area of the minimum of 1.1812. A more distant target will be the area of 1.1764, where I recommend fixing the profits. In the scenario of an upward correction of EUR/USD in the afternoon, it is best to wait for the formation of a false breakout in the resistance area of 1.1887 or open short positions immediately to rebound from the high of 1.1937, counting on a correction of 20-30 points within the day. In the afternoon, a number of representatives of the Federal Reserve System will also speak, which may support the US dollar.

Signals of indicators:

Moving averages

Trading is conducted below the 30 and 50 daily moving averages, which indicates the further formation of a downward correction.

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

Bollinger Bands

If the euro rises in the second half of the day, you can consider short positions on a false breakout from the average border of the indicator in the area of 1.1890 or immediately on a rebound from the upper border in the area of 1.1940.

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 speculative traders, 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 the short and long positions of non-commercial traders.