To open long positions on EURUSD you need:
Traders continued to sell the euro after the release of weak statistics on manufacturing activity in the eurozone. At the moment, it is not necessary to count on the continuation of the correctional growth that was observed in Asian trading. The main task of buyers will be a breakthrough and consolidation above the resistance of 1.1386, which will lead to an update of a larger level of 1.1433, where I recommend to take profits. Also, bulls need to stay above 1.1352. Otherwise, it is best to open long positions to rebound from 1.1312.
To open short positions on EURUSD you need:
In the first half of the day, important statistics are not expected to be released; therefore, an unsuccessful fixation above the resistance of 1.1386 will be a direct signal to selling the euro in order to break and fix below the support of 1.1352. Only below this level can we count on a large sell-off of the EUR/USD to the area of this week's low of 1.1312. Further fall of the euro to 1.1272 will directly depend on the data that will be released in the second half of the day for the American economy.
Indicator signals:
Moving averages
Trade is conducted below the 30-day and 50-day moving averages, which indicates that the pressure on the euro remains.
Bollinger bands
In the event of a decline in the euro, support will be provided by the lower limit of the Bollinger Bands indicator, which coincides with the support of 1.1312. In the case of growth, you can sell on the euro rebound after the test of the upper boundary of the indicator in the area of 1.1405.
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
