To open long positions on EURUSD you need:
Euro buyers left the market after a good report on US retail sales. At the moment, for a break of a downward trend, a level of 1.1364 is required, and the formation of a false breakdown on it will be the first signal to open long positions. The main goal of the bulls in the first half of the day will be a breakthrough and consolidation above the resistance of 1.1402, which will allow us to count on updating the high of 1.1439, where I recommend taking profits. In the event of a decline below the level of 1.1364, long positions can be returned to the rebound from the low of 1.1329.
To open short positions on EURUSD you need:
Bears today will count on a negative report from the ECB, which is released in the morning. Failing to fix above the resistance of 1.1402 will be a signal to open short positions in the euro in order to retest intermediate support of 1.1364, which will lead to a larger sale of EUR/USD to the area of lows of 1.1329 and 1.1296, where I recommend to fix profits. In case of growth above the resistance of 1.1402, it is best to sell the euro to a rebound from a high of 1.1439.
Indicator signals:
Moving averages
Trade is conducted below the 30-day and 50-day moving average, and if the bears are able to keep the pair below these averages, the pressure on the euro will continue.
Bollinger bands
The upward trend is limited by the upper limit of the Bollinger Bands indicator, which is located in the area of 1.1408 and from which you can see sales immediately on a rebound. In the event of a decline in the euro, support will be provided by the lower limit of the indicator in the area of 1.1343.
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
