To open long positions on EURUSD you need:
Weak eurozone reports, which I mentioned yesterday, continue to put pressure on the euro. Today, it is best to return to purchases after a false breakdown in the area of 1.1434 or already to rebound from a larger support of 1.1393. Much will depend on today's data on inflation in the eurozone. The report is expected in the morning. The main task of buyers will be to return to the resistance level of 1.1471, which will lead to the formation of a new lower boundary of the upward price channel. Only after that you can expect to update the highs in the area of 1.1506 and 1.1539, where I recommend to record profits.
To open short positions on EURUSD you need:
A weak report on inflation in the eurozone, which is likely to decline, could trigger a series of selling the euro in the first half of the day, and a breakthrough of support for 1.1434 will be a signal to open short positions in order to update the low of 1.1393 and 1.1342, where I recommend taking profits. In the case of EUR/USD growth in the first half of the day, resistance at 1.1471 will be a good level to sell. In the absence of sellers in this range, you can open short positions immediately to a rebound from 1.1506.
Indicator signals:
Moving averages
Trading has moved under the 30-day and 50-day moving averages, and a correction to them will be a good signal for opening short positions.
Bollinger bands
If the decline continues, the lower limit of the Bollinger Bands indicator in the 1.1415 area will be a good support. New sales can also be considered for a rebound from the upper boundary of the indicator in the area of 1.1493.
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
