To open long positions on EURUSD, you need:
The future direction of the market will depend on US GDP data. While trading is above the support range of 1.1122, the main task of the bulls will be to break and consolidate above the resistance of 1.1150, which was formed yesterday in the morning. Only after that, you can count on a larger upward correction with a test of the upper boundary of the new side channel 1.1177, where I recommend fixing the profit. When the euro falls again to the area of 1.1122, it is best to return to long positions only on a false breakdown, after the release of the US GDP report, or on a rebound from a minimum of 1.1079.
To open short positions on EURUSD, you need:
An unsuccessful attempt to consolidate at 1.1150 will be a new signal to open short positions in the euro in order to re-update the minimum of 1.1122, the breakdown of which will lead EUR/USD to the support area of 1.1079, where I recommend fixing the profits. With the growth of the euro above the resistance of 1.1150, and this can happen only after the release of a weak report on the growth of the American economy, it is best to open short positions on the rebound from the maximum of 1.1177, which can act as the upper limit of the new side channel.
Indicator signals:
Moving Averages
Trading is conducted below 30 and 50 moving averages, which indicates the preservation of the bearish nature of the market.
Bollinger bands
In the event of a decline in the euro, support will be provided by the lower bound of the Bollinger Bands indicator in the region of 1.1130, the breakdown of which will lead to a strong sale of EUR/USD.
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
