To open long positions on EURUSD, you need:
Even despite the data on the decline in the unemployment rate in the eurozone and the reduction in the number of applications for unemployment benefits in Germany, buyers of the euro failed to keep the pair above the intermediate support of 1.0930, the breakdown of which led to a new downward wave. At this point, I paid more attention to my morning forecast. At the moment, the bulls are trying to protect the minimum of the year in the area of 1.0905, which is a good level to buy. In the scenario of a breakdown of this range, it is best to postpone long positions in EUR/USD until the support update in the area of 1.0873 or open long positions immediately to rebound from the low of 1.0840. The buyers’ task for the second half of the day will be to return to the resistance of 1.0930 but there will be a lot of envy from the inflation data in Germany, as a similar report on the consumer price index in Italy disappointed traders. With growth above 1.0930, I recommend fixing the profit in the maximum area of 1.0958.
To open short positions on EURUSD, you need:
The bears coped with the morning task of the breakdown of 1.0930, and the consolidation below this level led to the renewal of the annual minimum in the area of 1.0905. The breakthrough of this level will depend entirely on the inflation data in Germany. A weak report will lead to a new wave of the sale of the euro to the lows of 1.0873 and 1.0840, where I recommend taking the profits. If the bulls manage to hold the support of 1.0905 in the second half of the day, it is best to look at short positions only after a false breakdown of the resistance of 1.0930 or sell EUR/USD immediately to rebound from the maximum of 1.0958.
Trading is below 30 and 50 moving averages, which indicates the continuation of the bearish trend.
The upper limit of the indicator near 1.0950 acts as a resistance, from where you can open short positions immediately on the rebound.
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