FX.co ★ Trading plan for the European session on September 7 EUR/USD and GBP/USD

EUR/USD

To open long positions on EURUSD, it is required:

Today, is an important day and the whole movement will depend on the decision of the ECB. The consolidation above 1.1930 will signal a increase in long positions in the euro with a prospect of reaching 1.1974 and an update of 1.2015, where it is recommended to lock in the profit. In case Draghi makes announcements about the exit of the bond repurchase program, the new purchases of the euro with the target of 1.2054 and 1.2123 can be seen. In the case of a decline in the euro in the morning, it is recommended to return to buying after the formation of a false breakout in the support area 1.1879-75, with a short stop below.

To open short positions on EURUSD, it is required:

Sellers will try to form a false breakdown of the level of 1.1930, which will lead to a decrease in EUR/USD in the support area 1.1879. Breakdown of 1.1879 opens a good opportunity to reduce the pair in the range of 1.1827. But the main major downward movement will depend on Mario Draghi. If the euro rises in the first half of the day, before the ECB president's speech,it is recommended to return to selling from a large resistance level of 1.1974, or on a rebound from 1.2015.

GBP / USD

To open long positions on GBPUSD, it is required:

New buying of pound is best expected after its correction to the support area 1.3025-1.3020. The formation of a false breakout there with an update of the already 50 day moving average will be a good signal to increase long positions with a repeat exit at 1.3055 and update the monthly highs in the area of 1.3091. In the event that the pound declines below 1.3025, buying is best immediately on the rebound from support 1.2986, or after updating a larger level of 1.2955.

To open short positions on GBPUSD, it is required:

Sellers can return to the market only by forming a false breakout at 1.3055 with a return to this level. If not, then opening new short positions is best on a rebound from 1.3091, with a small stop above. The main goal will be to reduce and consolidate below the level of 1.3025-20, which will lead to a deeper downward correction to the area of 1.2986 and 1.2955.

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