FX.co ★ EUR/USD: plan for the European session on May 31. The upward correction of the euro requires a breakdown of 1.1143

To open long positions on EURUSD, you need:

The technical picture has not changed, and the volatility continues to be very low. Buyers need to return to the resistance level of 1.1143, from which it will be possible to see an upward correction to the maximum area of 1.1170, where I recommend fixing the profits. In the morning, a number of important data on inflation in Germany and Italy are published, which may put pressure on the euro. In this scenario, it is best to look for purchases on the minimum update in the area of 1.1117, provided that a false breakdown is formed, or to open long positions for a rebound from the new support of 1.1079.

To open short positions on EURUSD, you need:

The release of important fundamental data in the first half of the day for the euro area may lead to a decline in the euro. A false breakdown and return under the resistance level of 1.1143 will be a signal to open short positions in the euro, and the main task for the first half of the day will be a test of a large support level of 1.1117, which will increase the pressure on the pair and will lead to an update of the minimum in the area of 1.1079, where I recommend fixing the profits. Under the scenario of the growth of the euro above 1.1143, it is best to return to short positions in EUR/USD after updating the high of 1.1170 or to rebound from a larger level of 1.1196.

Indicator signals:

Moving Averages

Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the market.

Bollinger Bands

Volatility is very 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