To open long positions on EURUSD you need:
Buyers of the euro attempted to rise above the resistance of 1.1240, but weak reports indicating a drop in manufacturing activity in various eurozone countries limited the upside potential. For the bulls, a repeated return and consolidation above the level of 1.1240 is required, which will open up the possibility of further correction to the highs of 1.1269 and 1.1294, where I recommend fixing the profits. In the case of a further decline in the euro in the second half of the day, which may occur against the background of a good report on US retail, it is best to return to long positions on a false breakdown from the lower border of the side channel 1.1211 or on a rebound from a minimum of 1.1176.
To open short positions on EURUSD you need:
The bears coped with the task for the first half of the day and formed a false breakdown in the area of resistance 1.1240. While trading is below the 1.1240 range, pressure on the euro will continue, and the bearish target will again be at least around 1.1208, a breakthrough of which will lead to a larger EUR/USD sale to the support area of 1.1176, where I recommend fixing the profits. In the scenario of EUR/USD returns to the resistance level of 1.1240 in the second half of the day, it is best to consider short positions on a rebound from the maximum of 1.1269 and 1.1294.
Indicator signals:
Moving Averages
Trade is conducted in the area of 30-day and 50-medium moving, which indicates the lateral nature of the market.
Bollinger bands
An upward correction on the euro will be formed in case of a break of the upper border of the Bollinger Bands indicator in the region of 1.1250. A break of the lower border in the 1.1211 area will lead to a new wave of EUR / USD decline.
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