FX.co ★ EUR/USD: plan for the US session on May 23. Weak reports on the eurozone allowed to break through the level of 1.1143

To open long positions on EURUSD, you need:

Buyers missed the support level of 1.1143 against the background of weak reports on the Eurozone and Germany, which indicated a decrease in activity indices. A new task for the second half of the day is to return to the range of 1.1143, which may lead to an update of the morning resistance level in the area of 1.1166, where I recommend fixing the profits. In the case of a further decline in the euro, it is best to return to long positions to rebound from a large low of 1.1112.

To open short positions on EURUSD, you need

Bears are required to form a false breakdown in the resistance area of 1.1143, which will maintain the downward potential and lead to a further reduction of EUR/USD to the support area of 1.1112 and 1.1079, where today I recommend fixing the profits. In a scenario of growth of EUR/USD above the resistance of 1.1143, short positions can be opened immediately to rebound from a maximum of 1.1166. Given the elections to the EU Parliament, volatility will continue to be extremely low.

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.

Bollinger Bands

The volatility of the indicator is low, which does not give signals to enter the market.

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