To open long positions on EURUSD, you need:
Data from the IFO Institute of Germany on the indicator of business conditions did not provide serious support to the euro in the first half of the day, as the index remained unchanged in October compared to September. However, buyers managed to cope with the task and came close to the resistance of 1.1120, on which the further growth of the euro depends. The breakdown of this range will update the highs of 1.1149 and 1.1178, where I recommend taking the profits. If the pressure on the euro continues, which is also very likely, it is best to open new long positions in EUR/USD only if a false breakdown is formed at the minimum of 1.1090 or a rebound from the larger support of 1.1060.
To open short positions on EURUSD, you need:
Sellers did not let the pair go above the resistance of 1.1120, and the formation of a false breakdown there, which I paid attention to in my morning forecast, so far leaves the market on the side of the bears. The main target remains the lower border of the current downward channel, which coincides with the first support level of 1.1090. A breakthrough in this area will increase the pressure on the euro, which will lead the pair to lows in the area of 1.1060 and 1.1026, where I recommend taking the profits. In the case of EUR/USD growth above the resistance of 1.1120 on the data from the University of Michigan, it is best to consider short positions from yesterday's resistance of 1.1149, which was formed after Mario Draghi's press conference.
Indicator signals:
Moving Averages
Trading is below the 30 and 50 moving averages, indicating a bearish advantage.
Bollinger Bands
It was not possible to break the upper border of the indicator. Calculation of sellers on the lower border test in the area of 1.1095.
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
