EUR/USD: plan for the European session on March 21. The Fed is not in a rush to raise rates in the future

Source: Forex Analysis

To open long positions on EURUSD you need:

The euro has increased after the Federal Reserve’s statement from yesterday and that they are not in a hurry to raise interest rates. A new upward trend is formed. At the moment, the sellers’ task is to return to the resistance of 1.1430, which will lead to the resumption of euro growth with a test of highs around 1.1459 and 1.1487, where I recommend taking profits. In the scenario that the pair declines in the first half of the day, long positions can be returned to rebound from a large support of 1.1396, where the moving averages will be tightened by the time of the decline. In case of a larger fall, you can buy EUR/USD on the rebound from 1.1348.

To open short positions on EURUSD it is required:

Sellers need to form a false breakthrough in the resistance area of 1.1430 which will be the first signal for opening short positions with the aim of a decline towards the support area of 1.1396, where I recommend to take profit. However, the main task of the bears will be to break and consolidate below the area of 1.1396, which will lead to a larger sale in the area of a low of 1.1348. In case of further growth in the trend above the resistance of 1.1430, you can look at short positions after updating the high of 1.1459, but it is best to sell on a rebound from 1.1487.

Indicator signals:

Moving averages

Trade is conducted above the 30-day and 50-day moving average, which indicates the bullish nature of the market. By reducing the euro you can buy on the rebound from the 50-day moving average.

Bollinger bands

The growth of the euro will be limited to the upper limit of the Bollinger Bands indicator in the area of 1.1470, from where you can sell the euro immediately to rebound. The average border in the 1.1400 area may limit the downward correction.

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Description of indicators

  • MA (moving average) 50 days – yellow
  • MA (moving average) 30 days – green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20

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