To open long positions on EURUSD, you need:
The euro continued its downward momentum, formed earlier this week after the data on the growth of unemployment in Germany to 5.0%. To return the upward impulse, buyers need to get above the resistance of 1.1170, where the demand for the euro will increase, which will lead to an update of the highs of 1.1196 and 1.1218, where I recommend fixing the profit. In the event of a decline in the euro further along with the trend, support will be provided by the area of 1.1143, however, to open long positions from it is best provided that a false breakdown is formed. I recommend buying EUR/USD on the rebound only after the test of the minimum of 1.1112.
To open short positions on EURUSD, you need:
While the trade is below the resistance of 1.1170, the pressure on the euro will remain, but the main task of the bears will be to test a large support level of 1.1143, which will increase the pressure on the pair and lead to an update of the minimum of the month in the area of 1.112, where I recommend fixing the profit. The release of important fundamental data for the US is not planned for the second half of the day, therefore, in case of EUR/USD growth above the resistance of 1.1170, it is best to consider short positions after updating the maximum of 1.1196 or to rebound from the larger level of 1.1218.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger Bands
In the case of the growth of the euro in the second half of the day, an upward correction will be limited to the upper border of the indicator in the area of 1.1175.
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
