To open long positions on EURUSD you need:
The new level of support in the area of 1.1280 again indicates that euro buyers are not going to give up so easily. Today, in the first half of the day, a return and consolidation above the resistance of 1.1310 is required, which coincides with the upper limit of the new downward channel, which will be a good signal for opening long positions in the euro in order to update the highs of 1.1336 and 1.1358, where I recommend to take profits. The data on the eurozone economy that will be released today would be able to support the euro, but only if there is a good inflation report. In case the EUR/USD declines in the first half of the day to the area of 1.1280, I recommend that you open long positions from there only if a false breakdown is formed. Otherwise, buy only on a rebound from 1.1258.
To open short positions on EURUSD you need:
A weak inflation report could harm the euro, leading to the formation of a false breakdown in the support area of 1.1310. This will be the first signal to open short positions to decrease and test the level of 1.1280, the breakdown of which will increase the pressure on the pair and lead to a larger EUR/USD sale to the lows in the area of 1.1258 and 1.1232, where I recommend taking profits. With the EUR/USD growth scenario above 1.1310, it's best to open short positions for a rebound from a high of both 1.1336 and 1.1358.
Trade is conducted in the region of 30 and 50 moving averages, which indicates the lateral nature of the market.
A breakthrough of the upper limit of the Bollinger Bands indicator around 1.1310 will lead to the resumption of an uptrend. The downward correction may be limited by the lower boundary of the indicator in the area of 1.1280.
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