To open long positions on EURUSD you need:
As I noted yesterday, the upward trend in the euro is slowing down, and the downward correction is proof of that. Today, we need to pay attention to the report on inflation in the eurozone, which could lead to a new will for the pair to fall. It is best to return to long positions after a correction and the formation of a false breakdown in the support area of 1.1304 or to rebound from a low of 1.1278. Only a breakthrough and consolidation above the resistance of 1.1333 will resume an upward movement in the pair in order to update the highs around 1.1368 and 1.1405, where I recommend taking profits.
To open short positions on EURUSD you need:
Bears will count on another unsuccessful attempt to break through resistance to 1.1333, and weak data for the euro area may lead to a downward correction in the area of yesterday's support of 1.1303 and 1.1278, where I recommend to lock in profits. In the case of good data, the growth of the EUR/USD may continue; in such a scenario, it is better to return to short positions against the trend to rebound from a high of 1.1368 and 1.1405.
Indicator signals:
Moving averages
As long as trading will be above 30-day and 50-day moving averages, the demand for the euro will continue.
Bollinger bands
A break of the upper border of the Bollinger Bands indicator in the area of 1.1320 could lead to another wave of growth in the euro. In case of a decline, the lower limit in the 1.1290 area will provide good support for the pair.
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
