To open long positions on EUR / USD pair, you need:
Despite the fact that the Fed left rates unchanged, the US dollar is expected to rise against the euro as many traders predict a rate hike in December. As for euro purchases in the short term, it is suggested to be at 1.1338. Formation of a false breakdown on it will be a signal to open long positions based on a correction in the area of resistance 1.1369, where taking profits are recommended. In the event of a further decline in the euro with the trend, you can buy to rebound from the minimum of last month in the area of 1.1303.
To open short positions on EUR / USD pair, you need:
Sellers need to form a false breakdown at the resistance level of 1.1369 and also to consolidate below the important support level of 1.1338, in case of euro growth there in the first half of the day. The breakthrough of this range will lead to a new wave of euro sales with the renewal of a minimum around 1.1303, where taking profits are recommended. If the euro rises above the resistance of 1.1369 in the first half of the day, sales can be returned to the rebound from 1.1402.
Indicator signals:
Moving averages
Trade is conducted below the 30- and 50-day average which indicates the continuation of the fall of the euro. The 30-day average today will act as resistance.
Bollinger bands
If the euro rises in the first half of the day, the upper limit of the Bollinger Bands indicator located in the area of 1.1381 will act as a resistance from where you can sell the euro immediately to rebound. Limit the downward correction to the lower limit of the indicator in the area of 1.1320.
Description of indicators
MA (moving average) 50 days - yellow
MA (moving average) 30 days - green
MACD: fast EMA 12, slow EMA 26, SMA 9
Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com