To open long positions for EURUSD, it is required:
Euro buyers quickly left the market after the release of more than a good report on the US labor market, which continues to show phenomenal performance. At the moment, buyers of the EUR/USD need to return with a consolidation above the resistance of 1.1408, from which the demand for the euro will return, which will allow a renewal of the upward correction, which gradually develops into a new trend. The goal will be to update the high of last week in the area of 1.1453 with an exit to the resistance of 1.1516, where I recommend to take profit. In case the euro declines in the first half of the day, it is best to return to long positions on a false breakout from 1.1373 or a rebound from 1.1340.
To open short positions for EURUSD, it is required:
Sellers need to form a false breakout at the resistance level of 1.1408, and then return and gain a foothold below the important support level of 1.1373. This will allow you to resume the downtrend and break the lower limit of the new upward channel, which will lead to updating the lows of last week 1.1340 and 1.1304, where I recommend taking profits. If the euro rises above the resistance of 1.1408 in the first half of the day, sales can be returned to the rebound from 1.1453.
Indicator signals:
Moving averages
Trading has returned below the 30-day and 50-day average, and the unfortunate consolidation above the moving will be a signal to open short positions in the euro.
Bollinger bands
In case the euro declines, support will be provided by the lower line of the Bollinger Bands indicator, which is located in the area of 1.1360, from which you can buy on a rebound. With the growth of the EUR/USD above 1.1408, the upward potential will be limited to the upper boundary of the channel in the region of 1.1440, from which you can sell for a rebound.
Indicator description
Moving Average (average sliding) 50 days - yellow
Moving Average (average sliding) 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