FX.co ★ Trading plan for the European session on July 31 EUR/USD and GBP/USD

EUR/USD

To open long positions on EURUSD, it is required:

To buy today, at the end of the month, it is advised to be very careful. The optimal option for opening long positions will be after the formation of a false breakdown in the support area 1.1716, from which it can be expected to update to 1.1757. The stabilization at 1.1757, without the formation of a divergence on the MACD, will also be a signal to increase long positions in order to reach the new monthly highs of 1.1803 and 1.1845. In case of a bigger drop in the euro, it is recommended to go back to buying after updating 1.1671 and 1.1624.

To open short positions on EURUSD, it is required:

Sellers will try to gain a foothold below 1.1716, which will open the opportunity to decline to the area of larger support levels of 1.1671 and 1.1624, where it is recommended lock in profits. Selling can also be seen after a growth attempt above 1.1757 with the formation of a divergence there on the MACD indicator, which may occur after the Friday's high of last week. The return to 1.1757 will be an additional signal to increase short positions.

GBP / USD

To open long positions on GBP / USD, it is required:

Today, buyers will try to keep the pound above the level of 1.3110, and the formation of a false breakdown there will be an additional signal to increase long positions. Increase at level 1.3144 with consolidation there will also allow large players to build long positions with the main purpose of updating to 1.3206 and 1.3238. If the pound is falling in the morning, below 1.3110, it is recommended that to return to purchases after updating support to 1.3073.

To open short positions on GBP / USD, it is required:

Sellers will try to gain a foothold below 1.3110, which will lead to a larger downward correction to the area of 1.3073 and 1.3039, where it is recommended to lock profits.

Fears 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

To familiarize with the basic concepts and the general rules of the TS see here.