To open long positions on EURUSD, you need:
In the first half of the day, I paid attention to the level of 1.0845 and its importance from a technical point of view. Although the bears did not allow to gain a foothold above this range on the first attempt, which is clearly visible on the 5-minute chart, where the test of the level of 1.0845 failed from the top down, however, trading continues to be conducted around this range, which will make it very strong in the future. The main task of euro buyers is to hold the pair above 1.0845 in the second half of the day, which may well lead to another wave of growth in the area of highs of 1.0882 and 1.0908, where I recommend fixing the profits. However, given that important fundamental data are not released today, after several unsuccessful attempts, the optimism of the bulls may dry up, which will lead to a return of the pair to the level of 1.0845 and a downward correction to the area of 1.0816, from which I recommend opening long positions immediately for a rebound with the goal of an upward movement of 20-30 points within the day.
To open short positions on EURUSD, you need:
Sellers tried to form a false breakout of the resistance of 1.0845, which can be seen on the 5-minute chart, but they failed to find support from larger players, which led to the formation of an intraday side channel around this level. In the second half of the day, the task of the bears will be to return EUR/USD to the level of 1.0845, which will increase pressure on the euro and push it to the lows of the day in the area of 1.0816, where I recommend fixing the profits since you can not count on a larger movement without fundamental data. In the scenario of a further upward correction, you can look at short positions immediately for a rebound from the maximum of 1.0882 or even higher in the resistance area of 1.0908.
Signals of indicators:
Moving averages
Trading is conducted above the 30 and 50 daily moving averages, which indicates the advantage of euro buyers.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.
Bollinger Bands
In the case of a downward correction, the average border of the indicator in the area of 1.0825 will provide support, and you can buy euros immediately on the rebound from the lower border in the area of 1.0787.
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
