To open long positions on EURUSD you need:
Buyers are now required to return and consolidate above the resistance of 1.1220, and only good data on eurozone GDP, which should be better than economists' forecasts, will help to do this. Only in such a scenario can we expect a new bullish momentum in order to update highs of 1.1251 and 1.1275, where I recommend taking profits. If the pressure on EUR/USD continues further, purchases can be returned after forming a false breakdown in the support area of 1.1188 or to rebound from a low of 1.1166.
To open short positions on EURUSD you need:
The formation of a false breakdown in the resistance area of 1.1220 will be the first signal to open short positions in the euro, which will confirm the upper limit of the new descending channel. This will lead to a correction in the intermediate support area of 1.1188, however, the main purpose of the bears today will be a test of a low of 1.1166, where I recommend taking profits. In case of a good report on eurozone GDP and consolidation above the resistance of 1.1220, it is best to open short positions to rebound from a high of 1.1251 or even higher - around 1.1275.
Indicator signals:
Moving averages
Trade is conducted below 30 and 50 moving averages, which indicates the formation of market's bearish nature.
Bollinger bands
The euro's growth will be limited to the upper boundary of the indicator in the region of 1.1225, while pressure will increase after the breakdown of the lower boundary in the area of 1.1195.
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
