To open long positions on the EURUSD it is required to:
Yesterday, selling the euro quickly did not work, but buyers are in no hurry to return to the market. While trading is above support at 1.1350, the demand for the EUR/USD will remain, and the formation of a false breakdown at this level will be an additional signal to open long positions in order to update the high of 1.1400, where I recommend taking profits. Breakthrough and consolidation above 1.1400 will form a new upward trend in order to update levels 1.1433 and 1.1471. In the event of a decline under the support of 1.1350, long positions can be returned immediately to the rebound from the low of 1.1309.
To open short positions on EURUSD you need:
The formation of a false breakdown and a return below the level of 1.1400 may call into question the continuation of the upward trend in the euro, which was formed yesterday in the Asian session. The main objective of the bears continues to be the level of 1.1350, fixing below which will lead to a larger fall of the EUR/USD to the support area of 1.1309, where I recommend taking profits. In case the EUR/USD grows in the first half of the day, above the resistance of 1.1400, I recommend returning to short positions after the update of the high near 1.1433.
Indicator signals:
Moving averages
Trade is conducted above the 30-day and 50-day moving averages, and the 30-day again crosses the 50-day bottom-up, which indicates the formation of an uptrend.
Bollinger bands
A break of the upper border of the Bollinger Bands indicator in the area of 1.1385 will lead to new purchases of the euro. In the event of a decline in the euro in the first half of the day, support will be provided by the lower line of the indicator in the area of 1.1325, from where you can buy immediately 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
