To open long positions on EUR / USD pair, you need:
In the first half of the day, euro buyers managed to stay above the support level of 1.1320-1.1310 and form a false breakdown there. As a resulted, there was an increase in the area of larger resistance 1.1341, which I paid attention to this in my morning forecast. Only a fixation above the area of 1.1341 will create a good signal to buy the euro in order to update the maximum of 1.1370, where I recommend taking profits. In the afternoon, you need to pay attention to data on inflation in the United States, which may lead to a larger increase in the US dollar. In case of EUR / USD decline, I recommend returning to long positions from the support level of 1.1293 or to the rebound from 1.1268.
To open short positions on EUR / USD pair, you need:
The bears failed to break below the support of 1.1310 and their main task at the moment is to keep the resistance area of 1.1341. Forming a false breakout at this level , which may coincide with the release of data on inflation in the US, will be a good signal to sell the euro. Also, a fixation below the support of 1.1310 already in the afternoon will lead to a larger downward trend, with an update of 1.1293 and 1.1268 lows, where I recommend to take profits. In the case of a release of poor fundamental statistics for the US and EUR/USD growth above 1.1341, short positions can be opened on a rebound from the maximum of 1.1370.
Indicator signals:
Moving averages
Trade is conducted under the 30- and 50-day moving averages, which indicates the formation of a downward trend.
Bollinger bands
If the euro declines in the second half of the day, the Bollinger Bands indicator at 1.1314 will provide good support, a breakdown of which will lead to a big euro sale.
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
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