To open long positions on EURUSD, you need:
In the morning, I drew attention to the support level of 1.1275, on which the further movement of the euro is directly depended. The formation of a false breakout on it, along with a good report on the eurozone service sector, allowed buyers to return to the market. At the moment, the task of the bulls is to break and consolidate above 1.1307, which will lead to further growth of EUR/USD with the update of the highs of 1.1338 and 1.1364, where I recommend taking the profit. If the bears will return to the market and will be able to break below the support of 1.1275, it is best to consider long positions to rebound in the area of a minimum of 1.1239.
To open short positions on EURUSD, you need:
Like yesterday, the bears will try to form a false breakout in the resistance area of 1.1307, and a return under it in the afternoon will be a signal for the continuation of the downward trend, which will push EUR/USD to the low area of 1.1275 and will lead to the renewal of a larger support of 1.1239. If the demand for the euro continues after a weak labor market report, the upward potential will be limited by the resistance of 1.1338. In case of a breakthrough, this range can be sold immediately to the rebound from the maximum of 1.1364.
Indicator signals:
Moving Averages
Trading is conducted in the area of 30 and 50 moving averages, which indicates market uncertainty with a small margin of euro sellers.
Bollinger Bands
The growth of EUR/USD is limited by the upper limit of the indicator in the area of 1.1310. A breakthrough in this area could lead to a larger euro growth in the afternoon.
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
