To open long positions on EURUSD, you need:
Yesterday, euro buyers reached the resistance of 1.1261 after statements about a possible decrease in interest rates in the US, but a breakdown of this range is necessary for continued growth. Divergence formed in the MACD indicator can prevent the buyers to continue the growth in the first half of the day. Therefore, the whole calculation is on good inflation data in the eurozone, which will provide a breakthrough of 1.1261 and exit to the highs of 1.1294 and 1.1336, where I recommend fixing the profits. With a decrease in EUR/USD, support will be provided by the area of 1.1230, from which it is best to open long positions if a false breakout is formed. I recommend to buy for a rebound from a minimum of 1.1199.
To open short positions on EURUSD, you need:
Sellers of the euro will count on the divergence, which is formed on the MACD indicator, so an unsuccessful breakthrough and a return to the level of 1.12261 will be the first signal for the opening of short positions of the euro, the purpose of which will be the support of 1.1230, where I recommend fixing the profit. However, it is worth remembering that weak inflation in the eurozone can help push the pair to a minimum of 1.11199. In the scenario of further growth in the trend above 1.1261, you can look at short positions from the resistance of 1.1294 or a rebound from the maximum of 1.1336.
Indicator signals:
Moving Averages
Trading is conducted above 30 and 50 moving averages, which indicates the bullish nature of the market.
Bollinger Bands
In the event of a decline in the euro, support will be provided by the average indicator border in the area of 1.1230, while it can be sold after the unsuccessful breakdown of the upper indicator border in the area of 1.1285.
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
