To open long positions on EURUSD, you need:
The situation has not changed compared to the morning forecast, and euro buyers continue to fight desperately for the support level of 1.0927, the formation of a false breakdown on which in the morning still retains hope for an upward correction of the euro. A report on moderate growth in eurozone producer prices prevented bears from resuming the downward trend, even though they tried to break below the weekly low. As long as the trade is above this support, we can expect the recovery of EUR/USD in the maximum area of 1.0955 and its breakdown, which will lead to a test of the level of 1.0982, where I recommend fixing the profits. If the pressure on EUR/USD continues, it is best to count on new long positions after updating the lows around 1.0900 and 1.0873.
To open short positions on EURUSD, you need:
Sellers of the euro took advantage of the expected weak inflation report, which was worse than economists' forecasts, but it was not possible to break below the support of 1.0927. The focus will be shifted more to the afternoon when reports on production activity in the United States will be released. Only if the good indicators, we expect the further movement of the euro down with the updating of the lows in the areas of 1.0900 and 1.0873, where I recommend taking the profits. In an upward correction scenario, I recommend counting on short positions in EUR/USD only after a false breakdown in the resistance area of 1.0955, however, the best option for sales is to update the maximum of 1.0982.
Signals of indicators:
Moving Averages
Trading is below 30 and 50 moving averages, indicating a bearish market.
Bollinger Bands
In the case of euro growth, the upper limit of the indicator around 1.0982 will limit the upward potential.
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
