To open long positions on EURUSD, you need:
In the morning forecast, I paid attention to the probability of forming a false breakout in the support area of 1.0826 and recommended opening long positions from it in the continuation of the upward correction. If we look at the 5-minute chart, we can see how the bears tried to break below 1.0826 but failed to do so, which quickly brought the pair back to this level, allowing the formation of another wave of purchases before the release of an important report on the US. At the moment, all attention will be focused on the Non-Farm Employment Change report. While trading will be conducted above 1.0826, we can expect the euro to continue growing to the maximum area of 1.0882, fixing above which will lead to larger growth in the area of 1.0923, where I recommend fixing the profits. If the EUR/USD returns to the level of 1.0826 after the report is released, it is best to postpone purchases until the test of a larger minimum of 1.0771, counting on correction of 30-35 points within the day.
To open short positions on EURUSD, you need:
For sellers, nothing has changed. The data that is expected today on the US labor market is unlikely to lead to serious changes in the market since traders have ignored recently similar statistics. If the report does not go beyond the forecasts of economists, trade may remain in the side channel. In the first half of the day, the bears failed to break through to the level of 1.0826, which we see on the hourly chart, but it is possible that a repeat test of this range in the North American session will still lead to a larger sale of EUR/USD with an exit to the minimum of 1.0771, where I recommend fixing the profits. If the bulls continue to push the market up, it is best to return to short positions only on the rebound from the resistance of 1.0882 or sell EUR/USD from a larger maximum of 1.0923 in the expectation of a decrease of 30-35 points within the day.
Signals of indicators:
Moving averages
Trading is conducted above the 30 and 50 daily moving averages, which indicates the probability of continuing the upward correction of the pair.
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
A break in the lower border of the indicator around 1.0826 will lead to a new wave of falling euros. Breaking the upper border around 1.0850 will lead to a larger increase in the euro.
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
