To open long positions on EURUSD, you need:
After the ECB's decision and the statements that followed, the euro fell against the US dollar, but buyers are expected to return from the level of 1.1200, which I drew attention to in my morning forecast. Now, their task will be to break through and consolidate above the resistance of 1.1273, which will lead the euro to new highs in the area of 1.1304 and 1.1336, where I recommend fixing the profit. In case of an unsuccessful breakout of the resistance of 1.1273 and a downward correction in the afternoon, it is best to return to long positions on a false breakout from the level of 1.1241.
To open short positions on EURUSD, you need:
Sellers are still on the sidelines, as the performance of Mario Draghi can present a lot of surprises. The formation of a false breakout in the resistance area of 1.1304 will be a signal to euro sales. Otherwise, it is better to open short positions on the rebound from the level of 1.1336 and 1.1358. The main task of the bears will be to close the day below the support of 1.1273, which will keep the pair in the side channel and will not allow developing a new upward trend.
Indicator signals:
Moving Averages
Trading is conducted above 30 and 50 moving averages, indicating a return to the market of large buyers of the euro.
Bollinger Bands
A breakthrough of the upper boundary of the indicator took place and while the trend is developing on the side of euro buyers.
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
