12.12.201913:02 Forex Analysis & Reviews: EUR/USD: plan for the US session on December 12. The euro fell before the decision of the European Central Bank

To open long positions on EURUSD, you need:

In the first half of the day, weak data on the reduction of industrial production in the eurozone put pressure on the European currency, but the bears did not manage to go beyond the established morning range. Production fell by 0.5% in October, after falling by 0.1% in September this year. At the moment, buyers will wait for the press conference of the head of the ECB, Christine Lagarde, as interest rates will remain unchanged, which will not lead to market changes. Protection of the support level of 1.1120 will be the main goal of the bulls, and the formation of a false breakdown there in the afternoon will be a good signal to open long positions in the expectation of a return and a break above the resistance of 1.1149, which will lead to the updating of new highs in the areas of 1.1174 and 1.1226, where I recommend fixing the profits. In the case of a decline below the level of 1.1120, it is best to look at purchases after updating the lows of 1.1090 and 1.1072.

To open short positions on EURUSD, you need:

Sellers will wait for the assessment of further economic prospects from the European Central Bank and count on the breakthrough of the support of 1.1120 since it is from this level that the further growth of EUR/USD depends. If the bears manage to gain a foothold below this range, the pressure on the euro will increase, which will update the lows of 1.1090 and 1.1072, where I recommend taking the profits. If the ECB rate remains unchanged, it is possible to continue the growth of EUR/USD above the resistance of 1.1149. In this scenario, I recommend opening short positions immediately on the rebound from the highs of 1.1180 and 1.1226.

Indicator signals:

Moving Averages

Trading is above the 30 and 50 moving averages, which indicates the continued growth of the euro.

Bollinger Bands

If the euro falls after the ECB decision, the lower border of the indicator around 1.1090 will provide support, while the growth will be limited to the upper level of the indicator in the area of 1.1160.

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