To open long positions on EURUSD you need:
After the previous day's good upward correction, the demand for the euro will continue, but this requires a false breakdown in the support area of 1.1320-1.1315. Only after that will you be able to count on further demand with a breakthrough of a large resistance of 1.1350, consolidating on which will open a direct road to the area of a high of 1.1386 and 1.1432, where I recommend taking profits. In the event of a decline in the euro below the support level of 1.1320 in the first half of the day, there is no need to panic. Just below is the area of 1.1289, from which large buyers will attempt to form the lower boundary of the new ascending channel.
To open short positions on EURUSD you need:
Bears can return to the market after the formation of a false breakdown in the area of resistance at 1.1350, and the main task for the first half of the day will be to return to a support of 1.1320, below which a large sale will lead to a test of a low of 1.1289, where I recommend taking profits. However, the bearish trend will also be tied today to data on inflation in the US, which is expected to be released in the afternoon. In the event of a weak report and that the EUR/USD increases above the resistance of 1.1350, I recommend returning to short positions to rebound from a resistance of 1.1386.
Indicator signals:
Moving averages
Trading is conducted above the 30-day and 50-day moving averages, which indicates that the upward correction is maintained. Reducing the pair to a medium area can be a good signal to buy the euro.
Bollinger bands
In case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.1360 will limit the upward potential. It is best to return to long positions after the test of the middle boundary in the area of 1.1315.
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
