To open long positions on EURUSD, you need:
Released in the first half of the day, data on inflation in the eurozone did not differ much from the forecasts of economists, so the European Central Bank has little reason to rejoice. A small increase in the indicators of the German business environment also did not allow the euro to strengthen its positions, gradually pushing the pair to the support of 1.1129. Only the formation of a false breakout at this level in the second half of the day will somehow revive the market and allow us to count on the return of EUR/USD to the resistance area of 1.1164. However, it will be possible to talk about the resumption of the upward trend only after the breakdown of this range, which will open a direct road to the highs of 1.1198 and 1.1226, where I recommend taking the profits. There are no important fundamental statistics scheduled for the North American session, so low volatility in the pair may continue. In the scenario of a decline below the level of 1.129, it is best to return to long positions after updating the minimum of 1.1090, or then open long positions immediately on the rebound from the support of 1.1041.
To open short positions on EURUSD, you need:
Sellers are not active, and the low volatility of the market discourages any desire to storm and break this week's low. Weak eurozone inflation statistics pushed the pair only to the support of 1.1129. The only consolidation below this level will increase the pressure on the euro and lead to a downward correction in the area of lows of 1.129 and 1.1090, where I recommend taking the profits. If the pair grows in the second half of the day, only a false break in the area of 1.1165 will be a signal to open short positions. Otherwise, I recommend selling EUR/USD immediately on the rebound only from the maximum of 1.1198.
Indicator signals:
Moving Averages
Trading is conducted around 30 and 50 moving averages, which indicates some market uncertainty.
Bollinger Bands
If the euro rises in the second half of the day, the upper limit of the indicator around 1.1155 will act as a resistance.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence - Moving Average Convergence / Divergence). Fast EMA Period 12. Slow EMA Period 26. SMA Period 9.
- Bollinger Bands (Bollinger Bands). Period 20.
