To open long positions on EURUSD, you need:
The released data on the decline in German import prices and the fall in lending to the private sector of the eurozone put pressure on the European currency in the morning, which remained to trade near the support level of 1.1086, which I drew attention to in my morning review. While buyers are not in a hurry to return to the market, therefore, I recommend postponing long positions until the minimum of 1.1055 is updated, which can be tested today in the afternoon. A return to the resistance level of 1.1119 remains an equally important task for buyers since only this will allow resuming the upward correction and updating the maximum of 1.1151, where I recommend taking the profit.
To open short positions on EURUSD, you need:
Sellers continue to knock at the support level of 1.1086, but only a consolidation below this range will increase the pressure on EUR/USD and lead to a further downward trend in the support area of 1.1055, where I recommend fixing the profits. In the case of the euro growth in the second half of the day, which may occur against the background of the absence of important fundamental statistics, only the formation of a false breakout in the resistance area of 1.1119 will signal the opening of short positions. Selling immediately on the rebound is best from a maximum of 1.1151.
Signals of indicators:
Moving Averages
Trade is carried out near about 30 and 50 moving averages, which indicates more market uncertainty with the prospect of a further decline in the euro.
Bollinger Bands
The break of the lower limit of the indicator in the area of 1.1075 will lead to a further decrease in the euro.
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
