To open long positions on EURUSD you need:
Angela Merkel left, and the euro rose. An interesting twist, of course. In order to continue the upward trend, a breakdown and consolidation above the resistance of 1.1444 is required, which will lead to a larger upward trend with the update of the highs of 1.1471 and 1.1498, where I recommend to lock in the profit. In case of a decrease in the EUR/USD during the first half of the day, long positions can be returned on a false breakdown in the area of 1.1414 or on a rebound from a bigger low of 1.1388. Good industrial production data in Italy can help buyers.
To open short positions on EURUSD you need:
The bears need to stay below the resistance of 1.1444, and the formation of a false breakout on it will be a good signal to open short positions in order to decline to the intermediate support area of 1.1414, the first test of which will necessarily lead to a rebound in the euro. It is best to sell from this level at a repeated decline with the main goal of a breakdown and a decline in the area of a low of 1.1388, where I recommend taking profits. If the EUR/USD rises further along the trend above the resistance of 1.1444, you can take a closer look at short positions at a rebound from the highs of 1.1471 and 1.1498.
Indicator signals:
Moving averages
Trading is conducted above the 30-day and 50-day moving averages, which indicates the continuation of an upward trend. Long positions can be opened when the pair drops to the middle area.
Bollinger Bands
The break of the upper limit of the Bollinger Bands indicator in the area of 1.1444 will be a signal to buy. In case the euro declines, you can look at the long positions in the area of the average border, which is located in the area of 1.1400.
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
