To open long positions on EURUSD you need:
Today, the decision of the European Commission for Italy will be published, which is unlikely to surprise traders with something. Most likely, the EU will apply disciplinary measures against the Italian authorities. It is best to consider long positions after the formation of a false breakdown in the region of the intermediate support level of 1.1365, since its breakdown will lead to a further decline in the euro. It is possible to buy EUR / USD immediately to rebound from a larger area of 1.1329, where most likely, the lower limit of the new upward price channel will be formed. The main task of buyers today will be a breakthrough and consolidation above resistance 1.1409, There will be a maximum of 1.1468, where I will go.
To open short positions on EURUSD you need:
Open short positions in the euro is best with an upward correction on the rebound from the resistance of 1.1409, where the average moving is now concentrated. The main task of the bears will be a breakthrough and consolidation below 1.1365 support, which will lead to the formation of a new downward wave with the renewal of minima in the area of 1.1329 and 1.1286, where I recommend taking profits. In the case of the EUR / USD growth above resistance 1.1409, it is the best to consider new short positions to rebound from a weekly high of 1.1468.
More details about this is up in my video review.
Indicator signals:
Moving averages
Trade has moved below the 30- and 50-day average, which indicates the formation of a downward correction in the euro.
Bollinger bands
The upper limit of the Bollinger Bands is located in the 1.1422 area. It may limit the upward potential and with its test, I recommend selling the euro for a rebound. In the case of a decline in the euro, the lower limit of the indicator in the 1.1342 area will be a good level for taking profits on short positions.
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
