To open long positions on EURUSD, you need:
Yesterday's report on consumer confidence in the US led to a new wave of EUR/USD decline. At the moment, the upward momentum will depend on the level of 1.1170, the return on which will increase the demand for the euro, which will lead to an update of the maximum of 1.1196 and 1.1218, where I recommend fixing the profits. In case of further decline of the euro against the background of weak data on the economy of France and Germany, namely, they will focus on the first half of the day, support will be provided by the area of 1.1143, where you can open long positions immediately on the rebound.
To open short positions on EURUSD, you need:
A false breakdown and a return below the resistance level of 1.1170 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 1.1143, which will increase the pressure on the pair and will lead to an update of the minimum of the month in the area of 1.1112, where I recommend fixing the profits. In the scenario of good fundamental data, it is best to return to short positions in EUR/USD after updating the maximum of 1.1196 or to rebound from a larger level of 1.1218.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates a further decline in EUR/USD in the short term.
Bollinger Bands
In the case of euro growth in the first half of the day, the upward trend may be limited by the upper limit of the indicator around 1.1190. in the area of 1.1190.
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
