To open long positions on EURUSD, you need:
It seems that volatility is gradually returning to normal, and the current “trampling” in one place around the level of 1.0817 would have been perceived as a fairly good movement within the day. Reports from the IFO Institute on the German business environment indicator, which were slightly worse than economists’ forecasts, did not make a strong impression on the market. Bulls in the second half of the day still need to fix above the level of 1.0817, which will lead to repeated growth of EUR/USD to the highs of 1.0884 and 1.0930, where I recommend fixing the profits. The longer-term goal of the bulls will be the area of 1.0975. In the scenario of a further decline in the euro, and this option is now more likely, it is best to return to long positions on a false breakout from the support of 1.0727, or buy immediately on a rebound from the year’s minimum in the area of 1.0636 in the calculation of a rebound of 60-70 points inside the day.
To open short positions on EURUSD, you need:
For sellers, nothing much has changed. They will continue to need to protect the resistance of 1.0817, where the formation of a false breakout will be an additional signal to open short positions. Good data on the growth of orders for long-term goods in the US should help the dollar strengthen its position. Breaking the lower border of the ascending channel around 1.0780 will only increase pressure on the euro and return the pair to the support of 1.0727, fixing below which will collapse EUR/USD to the lows of the year 1.0636, where I recommend fixing the profits. More persistent sellers will wait for the levels of 1.0572 and 1.0549 to be updated. If the demand for the euro persists in the second half of the day, in this case, like yesterday, it is best to postpone sales until the test of the highs of 1.0884 and 1.0930, from where you can expect a rebound of 60-70 points inside the day.
Signals of indicators:
Trading is conducted in the area of 30 and 50 moving averages, which indicates a temporary confusion of the market with further direction.
A break of the lower border of the indicator in the area of 1.0770 will increase pressure on the euro, while a break of the upper border in the area of 1.0830 will lead to a new wave of growth.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence – moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20