19.08.202014:44 Forex Analysis & Reviews: EUR/USD: plan for the American session on August 19

To open long positions on EURUSD, you need:

In the first half of the day, buyers of the European currency managed to protect the support level of 1.1920, however, the data on inflation in the Eurozone failed, resulting in the pair hovering in a side channel. Also, a new resistance was formed in the area of 1.1952, which will be emphasized in the second half of the day. Only a break and consolidation above this level will serve as a signal to open long positions in the expectation of continuing the bullish trend to the maximum area of 1.1994. A more distant goal will be the area of 1.2022, where I recommend fixing the profits. Demand for the euro may also grow after the publication of the Federal Reserve minutes, so even if the correction to the support of 1.1920 and an attempt to break it, which the bulls will try to prevent, you should not expect a major fall in the pair. Most likely, buyers will show themselves after updating the minimum of 1.1884, where the lower border of the current ascending channel passes and where you can open long positions immediately for a rebound in the expectation of a correction of 25-30 points within the day.

To open short positions on EURUSD, you need:

Sellers need to hold the resistance of 1.1952, which was formed today in the first half of the day, as there are no other options for them yet. Only the formation of a false breakout there will bring down the aggressive upward potential of the European currency, and the first goal of the bears will be support for 1.1920, where the average moving averages that play on the side of euro buyers are held. The longer-term goal will be the area of 1.1884, where I recommend fixing the profits. In case of further growth of EUR/USD on the trend, and most likely the pressure on the US dollar will return after the publication of the Federal Reserve minutes, it is best to open short positions on a rebound from the resistance of 1.1994 in the calculation of a correction of 30-40 points within the day or sell the pair from the maximum of 1.2022.

Signals of indicators:

Moving averages

Trading is conducted above the 30 and 50 daily moving averages, which indicates the continuation of the bull market.

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

Volatility has decreased significantly and the breakdown of the lower border of the indicator in the area of 1.1925 may increase pressure on the euro. Breaking the upper limit at 1.1945 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.