To open long positions on EURUSD, you need:
Buyers of the euro managed to quickly recover after the breakout of the support of 1.1287, forming a false breakout there, which became a buy signal, which I paid attention to in my morning forecast. If you look at the 5-minute chart, you will see that the bears only broke below the level of 1.1287 for the second time, but failed to even gain a foothold under this range. Now the new goal of buyers is to break the resistance of 1.1320, which is visible on the hourly chart. Given that important fundamental statistics are not expected to be released in the second half of the day, an attempt to break 1.1320 is likely to be formed. However, it is best to open long positions above this range only after fixing on it, which will open a direct path to the maximum of 1.1380. The longer-term goal of the bulls remains the resistance of 1.1418, where I recommend fixing the profit. In the scenario of a decline in EUR/USD in the second half of the day, it is best to return to long positions if a false breakout is formed in the support area of 1.1272 or buy euros immediately for a rebound from the minimum of 1.1234 in the calculation of correction of 30-40 points within the day.
To open short positions on EURUSD, you need:
Sellers did not manage to show anything in the first half of the day, and good data on the growth of the IFO indices in Germany led to a rapid return of demand for the euro after a small downward correction in the first half of the day. Now the task of the bears is to form a false breakout in the resistance area of 1.1380, which will be the first signal to open short positions. However, an equally important goal will be a breakout and consolidation below the support of 1.1272, which will lead to a larger sale of EUR/USD to the area of the lows of 1.1234 and 1.1170, where I recommend fixing the profits. However, do not forget that the market is on the side of euro buyers, so if there is no activity on the part of sellers around the level of 1.1320, it is best to postpone short positions until the maximum of 1.1380 is updated, counting on correction of 30-40 points by the close of the day.
Signals of indicators:
Moving averages
Trading is conducted in the area of 30 and 50 daily moving averages, which indicates an active confrontation between buyers and sellers for the further direction of the market.
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
Breaking the upper limit of the indicator around 1.1320 will lead to a new wave of euro growth. A repeated test of the lower limit in the area of 1.1290 will increase the pressure on the pair.
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
