To open long positions on EURUSD you need:
The unsuccessful attempt to consolidate above the high around 1.1325 led to the euro's downward correction in the afternoon. Currently, buyers are counting on a good report on consumer sentiment in Germany and the eurozone, which may lead to the formation of a false breakdown in the first half of the day in the support area of 1.1288. This will be the first signal to buy euros, based on age and the test of yesterday's high in the area of 1.1332, where I recommend taking profits. The main target of the bulls will be the new resistance 1.1366. In case of a decline below the support level of 1.1288, I recommend that you look at long positions in EUR/USD on the support test of 1.1262 or on the rebound from the low of the month in the region of 1.1235.
To open short positions on EURUSD you need:
Euro sellers can use eurozone statistics, and in case of weak reports, break below support at 1.1288, which will increase pressure on the pair and lead to a return to the area of a low of 1.1262 and 1.1235, where I recommend taking profits. In the upward correction is preserved in the first half of the day, the signal for opening short positions in the euro will be an unfortunate consolidation above the resistance of 1.1332. In a different scenario, it is possible to sell EUR/USD on a rebound from a large high around 1.1366.
Trade returned to the area of 30-day and 50-day moving averages, which indicates the formation of the lateral nature of the market.
In case of growth, the upper limit of the Bollinger Bands indicator around 1.1332 will limit the upward potential of the euro. A break of the lower border in the area of 1.1288 will increase the pressure on the pair.
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