To open long positions on EURUSD, you need:
The pressure on the euro remained in the first half of the day, which led to the update of the support of 1.0930 and the formation of divergence on the MACD indicator. While trading is above this level, we can expect an upward correction in EUR/USD, but much will depend on what will be the data on US GDP for the 2nd quarter of this year. In the case of a breakthrough of the low of 1.0927, it is best to return to long positions in the euro to rebound from the lows of 1.0900 and 1.0873. A little later, there will be a speech by the President of the European Central Bank, which may weaken the position of the euro even more. If the bulls manage to turn the market to their side, the task for the second half of the day will be to return to the resistance of 1.0971 and consolidate on it, which will give EUR/USD an upward impulse to the area of the maximum of 1.1022, where I recommend fixing the profits.
To open short positions on EURUSD, you need:
Bears coped with the task for this week, and, despite the divergence of MACD, returned the pair to a minimum of 1.0930, testing this range for the third time. Most likely, the North American session will be another more successful attempt to break the above level, which will lead to an update of the support of 1.0900, where I recommend taking the profit. After the demolition of stop orders of speculative buyers below 1.0900, large players can return to the market, so selling at the breakdown of 1.0927 is a very dangerous idea. A more optimal scenario for selling EUR/USD will be a return to the resistance of 1.0971 with the formation of a false breakdown there, and it is best to open short positions immediately for a rebound from the maximum of 1.1022.
Signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates the continuation of the bearish trend.
Bollinger Bands
If the euro rises, the upper limit of the indicator around 1.0965 will act as a resistance, from where it is possible to open short positions immediately for a rebound.
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
