To open long positions on EURUSD, you need:
In the first half of the day, sellers of the European currency tried to return to the market and break below the support of 1.0819, but it did not work out very well. If you look at the 5-minute chart, you will see how the bears broke through quite successfully and settled below the level of 1.0819, which was a signal to open short positions, but this has not yet led to a larger sale of EUR/USD. Trade continues to be conducted around this range, but there are no people willing to buy the European currency. Towards the second half of the day, only after the formation of another false breakout at the level of 1.0819 recommend a look at long positions in the euro, but better purchases are best done on a rebound after a decline and update a minimum of 1.0771, based on a correction of 30-35 pips inside a day. An equally important task for the bulls will be the resistance test of 1.0873, where today I recommend fixing the profits, since it is unlikely that the bulls will be able to go beyond this range without support from fundamental statistics.
To open short positions on EURUSD, you need:
Sellers achieved a consolidation below the support of 1.0819, which I paid attention to in my morning forecast, but it was not possible to continue the downward movement. While trading will be conducted around the level of 1.0819, you can expect a further decline in the euro on the trend in order to update the minimum of 1.0771, where I recommend fixing the profits. However, if there is no downward movement from this level by the beginning of the North American session, it is best to exit short positions and wait for the resistance update of 1.0873, from where to sell EUR/USD immediately on the rebound. In the scenario of the pair's growth above 1.0873 on a large intraday volume, which is unlikely, since important fundamental statistics are not published today, it is best to count on sales only for a rebound from the resistance of 1.0923 with the goal of correction of 35-40 points within the day.
Signals of indicators:
Moving averages
Trading is conducted around the 30 and 50 daily moving averages, which indicates some market uncertainty with a slight preponderance of euro sellers.
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 1.0819 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
