Yesterday's speech by the ECB President Mario Draghi did not help the euro buyers, but regular statements from the US President to China led to a decline in the pair. At the moment, it is best to count on long positions after the formation of a false breakdown in the support area of 1.1328 or on a rebound from the new minimum of 1.1328. The main task of buyers EUR / USD will be the return and consolidation above 1.1374 resistance, which will lead to the formation of an uptrend in the area of 1.1417, where I recommend to take profits.
To open short positions on EURUSD you need:
The breakthrough of the support level of 1.1328 will be a signal to open short positions in euro in order to update the lows of 1.1296 and 1.1262, where I recommend taking profits. A break of 1.1328 will also lead to the continuation of the formation of a downtrend in EUR / USD. If the pair grows in the first half of the day, sales can be considered to rebound from a major resistance of 1.1374. The complication of US trade relations with China may push the euro down even more.
Indicator signals:
Moving averages
Trade is conducted below the 30- and 50-day moving averages, which indicates the continuation of the formation of a downtrend.
Bollinger bands
If the pair declines in the first half of the day, the lower limit of the Bollinger Bands indicator around 1.1315 may provide support. The resistance will be the upper limit in the area of 1.1358, from which you can see the euro for sale.
More details about the forecast can be found in the video review.
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
