To open long positions on EUR/USD pair, you need:
Buyers missed the level of 1.1275 and further upward movement of the pair will directly depend on it. Only a return to the second half of the day, together with a weak report on the American labor market, will allow the bulls to get to the maximum of 1.1307 in view of a further update of the resistance levels of 1.1338 and 1.1364, where I recommend taking profits. If the bears continue to push the pair down, it is best to look at long positions from a low of 1.1239.
To open short positions on EUR/USD pair, you need:
Sellers made their way to the level of 1.1275 but now, we need a strong report on the US labor market. This will keep the bearish mood of the pair and lead to the minima of 1.1239 and 1.1207, where I recommend taking profits. If the equilibrium returns to the market after the report and the bulls climb back to the resistance of 1.1275, it is best to return to short positions on a test of 1.1310 maximum or on a rebound from a larger area of 1.1338.
Indicator signals:
Moving averages
Trade is conducted below 30 and 50 moving averages, which indicates a possible bear market persistence, but much will depend on US data.
Bollinger bands
The growth of EUR/USD pair is limited by the upper boundary of the indicator in the region of 1.1295.
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
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