To open long positions on EURUSD you need:
Yesterday's good report on US consumer confidence led to another rise in the US dollar and pulled down the euro to support area of 1.1086. At the moment, long positions can be opened from this range only if a false breakdown is formed there. If there are no active purchases in this range, I recommend postponing long positions until a low of 1.1055 is updated, which can be tested after weak data on German import prices and lending in the eurozone. An equally important task for the first half of the day for buyers is also to return to the resistance level of 1.1119, as this will only allow renewal of the upward correction and update the high of 1.1151, where I recommend taking profit.
To open short positions on EURUSD you need:
Bears will rely on weak reports on Germany and the eurozone with the main goal of updating the low of 1.1086 and consolidating below, which will further increase pressure on EUR/USD and lead to a further downward trend in the support area of last week at 1.1055, where I recommend taking profits. If the euro rises in the morning, only the formation of a false breakdown in the resistance area of 1.1119 will be a signal to open short positions. Selling immediately on the rebound is best done from a high of 1.1151.
Signals of indicators:
Moving averages
Trading below 30 and 50 moving averages, which indicates the return of euro sellers to the market.
Bollinger bands
A break of the lower border of the indicator in the region of 1.1075 will only increase pressure on the euro. Growth will be limited by the upper level at 1.1115.
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
