To open long positions on EURUSD, you need:
Despite the weak inflation in Germany, euro buyers managed to return to the resistance level of 1.1143 in the first half of the day, which I mentioned in my morning review. The next target is the area of 1.1170, where today I recommend fixing the profits. When the decline scenario is supported by 1.1143, it is best to take a closer look at purchases after updating the minimum of 1.1117.
To open short positions on EURUSD, you need:
Weak data on Germany was calmly received by traders, once again emphasizing the likely slowdown in economic growth. Bears will manifest themselves only after the update of the maximum of 1.1170, from where I recommend to open short positions under the condition of forming a false breakdown. You can immediately sell the euro to rebound from a higher level of 1.1196. The main task of sellers in the afternoon will be the return under the support of 1.1143, which will keep the market in a downward trend.
Trading is conducted above 30 and 50 moving averages, which indicates the formation of a correction in the market.
In the event of a decline in the euro in the afternoon, the support will be provided by the average border of the indicator around 1.1143.
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