To open long positions on EURUSD, you need:
Buyers of the euro managed to return to the market, and now they are trying to cope with the morning resistance level of 1.1348, the consolidation of which will lead to an update of the maximum of 1.1370 and, perhaps, a larger level in the area of 1.1394, where I recommend taking the profit. However, despite good data on the labor market, other indicators for the eurozone remain very weak, which limits the upward potential. In the case of the euro decline scenario, it is best to return to long positions after the test of the support of 1.1311 or to rebound from a minimum of 1.1284.
To open short positions on EURUSD, you need:
The bears will try to form a false breakout in the resistance area of 1.1348, and a return under it in the afternoon will be a signal for the continuation of the downward trend, which will return EUR/USD to the low area of 1.1311 and will update the larger support of 1.1284. If the demand for the euro continues, the upward potential will be limited by the resistance of 1.1370, just above which the upper limit of the downward channel passes. With their breakthrough, you can sell immediately on the rebound in the area of 1.1394.
Indicator signals:
Moving Averages
Trading is conducted below 30 and 50 moving averages, and their test from the bottom up in the morning is a kind of signal to open short positions.
Bollinger Bands
The growth of EUR/USD is limited by the middle of the indicator in the area of 1.1348, but it is better to open new short positions on the rebound from the upper limit of 1.1385.
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
