To open long positions on EURUSD, you need:
Data on Germany, namely on the indicator of economic expectations, which was worse than economists' forecasts, did not allow the European currency to continue the upward correction. At the moment, buyers are protecting the support level of 1.1008, which I paid attention to in the morning review. However, it is best to open long positions from it only after the formation of a false breakdown. You can buy immediately on the rebound from the larger support area of 1.0989. The main task of the bulls in the second half of the day will be a return to the resistance of 1.1035, where I recommend taking the profits. However, it is unlikely that the speeches of representatives of the European Central Bank will have any effect.
To open short positions on EURUSD, you need:
Given that no important fundamental statistics are expected in the afternoon, the entire focus will remain on the US-China trade talks. Any negative news will help sellers of the euro to break below the support of 1.1008, which buyers are trying to keep now. The breakout of this range will lead to another wave of sales of EUR/USD with the update of the lows in the area of 1.0989 and 1.0972, where I recommend taking the profits. In the absence of activity at the level of 1.1008, short positions can be returned after the formation of a false breakdown in the resistance area of 1.1035 or sell the euro immediately on the rebound from the maximum of 1.1059.
Indicator signals:
Moving Averages
Trading is below the 30 and 50 moving averages, which indicates a further probability of a decline in the euro.
Bollinger Bands
Breaking the lower border of the indicator around 1.1008 will lead to a larger sell-off of the euro.
Description of indicators
- Moving average (moving average determines the current trend by smoothing volatility and noise). Period 50. The chart is marked in yellow.
- Moving average (moving average determines the current trend by smoothing volatility and noise). Period 30. The chart is marked in green.
- MACD indicator (Moving Average Convergence / Divergence — convergence/divergence of moving averages). Fast EMA period 12. Slow EMA period 26. SMA period 9.
- Bollinger Bands (Bollinger Bands). Period 20.
