EUR/USD: plan for the European session on October 16. Eurozone inflation is unlikely to help the euro break above 1.1040

To open long positions on EURUSD you need:

Yesterday's Brexit positive news helped euro buyers regain 1.1005, which limited the downward trend. Today, in the morning, all emphasis will be placed on the consumer price index data in the eurozone. Inflation is expected to be weak, which will force the ECB to continue to keep interest rates at zero. In case it's a good report, the bulls will once again try to break above the resistance of 1.1040, which will be a signal to open long positions in the hope of updating weekly highs in the areas of 1.1075 and 1.1109, where I recommend profit taking. In the scenario of another EUR/USD decline, amid a weak report, it is best to buy the euro only after a false breakdown is formed in the support area of 1.1005, or to rebound from the larger lows of 1.0975 and 1.0943.

To open short positions on EURUSD you need:

The main task of the bears will be the return of EUR/USD to the support of 1.1008, and the breakdown of this level will put new pressure on the euro, which will push the pair to the lows of 1.0975 and 1.0943, where I recommend profit taking. However, everything will depend on the fundamental data on the eurozone and the course of negotiations on Brexit. News that the EU is comfortable with Boris Johnson's plan may again lead to a sharp strengthening of the European currency. Failure to consolidate above the resistance of 1.1040 will be a kind of signal to sell EUR/USD. However, it is best to open short positions immediately on the rebound at a new weekly high in the area of 1.1075.

Signals of indicators:

Moving averages

Trade is conducted in the region of 30 and 50 moving averages, which indicates market uncertainty.

Bollinger bands

In case the euro declines, support will be provided by the lower boundary of the indicator at 1.1005. Break of the upper boundary in the area of 1.1045 may lead to continued growth of the euro.

Description of indicators