To open long positions on EURUSD, you need:
It is expected that the data on the euro area, which came out today in the morning, put pressure on the euro. The report on slowing inflation and rising unemployment goes against the plans of the European Central Bank, which will be forced to lower interest rates further. Bulls have already tried to keep the pair in the support area of 1.1149, but the test of this level did not lead to a larger increase, which suggests a further decline in the euro in the second half of the day. At the moment, it is best to consider new long positions only after the formation of a false breakdown in the support area of 1.1149, which may occur after the release of data on the US economy. However, a more acceptable level for purchases will be the area of 1.1116, from where you can open long positions immediately on the rebound. The main task of the bulls is to break the resistance of 1.1178, which will lead to further growth of EUR/USD near the highs of 1.1226 and 1.1263, where I recommend taking the profits.
To open short positions on EURUSD, you need:
Sellers coped with the morning task and did not let the pair above the resistance of 1.1178, and weak fundamental data on the eurozone did their job and returned the euro to the support of 1.1149. A further drop will depend on the breakthrough of this range and macroeconomic statistics for the United States. Good data will increase the pressure on EUR/USD, which will lead to an update of the lows in the area of 1.1116 and 1.1082, where I recommend taking the profits. If the bulls try to return to the market in the afternoon, the next formation of a false breakdown near the maximum of 1.1178 will be a signal to sell the euro. Otherwise, you can open short positions immediately on the rebound from the resistance of 1.1226.
Trading is above the 30 and 50 moving averages, which indicates the advantage of buyers of the euro.
The further downward movement in the pair will be restrained by the lower border of the indicator in the area of 1.1130.
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