To open long positions on EUR / USD, you need:
The buyers retreated from the market after yesterday's rapid growth, but only to build the lower boundary of the new ascending channel. For the second half of the day, the task is to break through and fix above the resistance of 1.1385, which will return the demand for the euro and lead to the update of the new highs of 1.1423 and 1.1468, where I recommend fixing the profits. In the case of a re-decline of the euro to the support area of 1.1348, it is best to open long positions from there when forming a false breakdown. Otherwise, you can buy EUR / USD for a rebound from 1.1310.
To open short positions on EUR / USD, you need:
As long as trading is below the resistance of 1.1385, the pressure on the euro will continue, and the release of weak inflation data in Germany may again return EUR / USD to the low of the day with a repeated support test of 1.1348, a breakthrough of which will lead to a new sale to the area of 1.1310, where I recommend fixing the profit. If the euro rises above 1.1385 in the second half of the day, it is best to consider short positions on a rebound from the maximum of 1.1423.
Indicator signals:
Moving Averages
Trade is conducted above the 30 and 50-day moving averages, which indicates the further formation of an upward correction.
Bollinger bands
The volatility of the Bollinger Bands indicator fell, which led to the absence of signals for entering the market.
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
The material has been provided by InstaForex Company -
www.instaforex.com