To open long positions on EURUSD, you need:
Buyers of the European currency failed to cope with the resistance level of 1.1217, which I drew attention to in my morning review, which helped sellers to continue the downward correction. At the moment, given the lack of important fundamental statistics on the US, we can expect the further movement of the euro down to the support area of 1.1171, where the formation of a false breakout will be the first signal for the opening of long positions. However, a more acceptable level for euro purchases is located in the area of the minimum of 1.1143, where the lower limit of the new upward channel will be formed. The main task of the bulls for the second half of the day is the resistance of 1.1217, the consolidation above which will continue the upward bullish trend to the area of the maximum of 1.123, where I recommend fixing the profits.
To open short positions on EURUSD, you need:
The signal to open short positions in the resistance area of 1.1217, which I paid attention to in the morning review, has fully worked itself out, and the first goal of sellers is still the support of 1.1171. With more active sales of the euro in the afternoon, the downward correction may lead to an update of the support level of 1.1143, where I recommend taking the profit. If the bulls try to return to the market against the background of comments of representatives of the Federal Reserve System, whose speeches are scheduled for the North American session, then you can count on short positions again after the update of the resistance of 1.1217. Selling EUR/USD immediately on the rebound is best at a maximum of 1.1263.
Indicator signals:
Moving Averages
Trading is above 30 and 50 moving averages, which indicates the continuation of the upward correction.
Bollinger Bands
In the case of further downward movement, the lower limit of the indicator will support the area of 1.1180.
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
