To open long positions on EURUSD you need:
Following the publication of yesterday's transcript of a telephone conversation between Trump and Zelensky, the likelihood of impeachment to the American president has significantly weakened. Today, buyers of the euro will focus on the release of a number of important fundamental statistics for the United States, as well as on the speech of the President of the European Central Bank Mario Draghi. Most likely the bulls will show themselves after updating the support level in the area of 1.0930. The formation of a false breakdown there, together with the divergence on the MACD indicator, which is now being formed, will be the first signal to open long positions, the target of which will be the resistance of 1.0984. Only after consolidating above this level can we expect a larger growth in the area of yesterday's high at 1.1022, where I recommend taking profits. If the bears continue to put pressure on the market, using good statistics for the US, then it is best to return to long positions to rebound from lows of 1.0900 and 1.0873.
To open short positions on EURUSD you need:
Today, sellers will clearly be less active before the release of data on the state of the US economy and the labor market. Most likely, in the first half of the day, the bears will try to reach a major support around 1.0930, however, to expect the continuation of a downward correction from there is unlikely to be the right decision. It is best to look for short positions after the formation of a false breakdown in the area of large resistance at 1.0984, or sell the euro immediately for a rebound from a high of 1.1022. If the bears manage to break below the low of 1.0930, and this can happen only after the speech of the president of the European Central Bank, who announces the high likelihood of new measures to ease monetary policy, the pressure on the euro will increase even more, which will lead to a test of the area of 1.0900 and 1.0873. where I recommend taking profits.
Signals of indicators:
Moving averages
Trading is conducted below 30 and 50 moving averages, which indicates a bearish nature of the market.
Bollinger bands
In the event of EUR/USD decline in the morning, support will be provided by the lower boundary of the indicator at 1.0930, while upward movement will be limited by the upper level of the indicator at 1.0984.
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
