To open long positions on EURUSD you need:
Tomorrow's interest rate decision and Christmas all bring more uncertainty to the markets. Data is ignored, and the direction becomes unpredictable. Today I recommend to make purchases on a false breakout in the area of 1.1332, and it is better to rebound from the low of 1.1311. The main task will be a breakthrough and consolidation above 1.1356, but this is subject to the release of good statistics from the IFO in Germany. In this case, you can count on the continuation of the upward trend to 1.1385, where I recommend to lock in the profit.
To open short positions on EURUSD you need:
Only an unsuccessful consolidation above resistance 1.1356, which coincides with the release of a weak report from the IFO Institute in Germany, will be a signal to open short positions in euros in order to return and retest the support of 1.1332. Fixing below this level will lead to a sale of the EUR/USD and the return of the pair to the area of a low of 1.1311, where I recommend taking profits in the first half of the day. In case of growth above 1.1356, it is possible to open short positions on the euro to rebound from a high of 1.1385.
Indicator signals:
Moving averages
Trade is conducted slightly above the 30-day and 50-day moving average, with a short-term advantage of buyers of the European currency.
Bollinger bands
The euro can be supported by the lower limit of the Bollinger Bands indicator, which is located in the area of 1.1330. Its breakthrough will lead to a large sale of the EUR/USD. The upper limit, which coincides with the resistance of 1.1356, limits the growth of the euro.
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
