To open long positions on EURUSD, you need:
In the first half of the day, a report on German inflation was released, which fully coincided with the forecasts of economists, thereby returning euro sellers to the market, betting on a further decline in the pair in the short term. The bears have already managed to get close to the rather important support level of 1.1161. Now all the attention of buyers has moved to this level, and only the formation of a false breakdown on it will be a signal to open long positions. If there is no activity on the part of major players and the volume is low, it is best to postpone buying the euro until the minimum of 1.1063 is updated, or to open long positions immediately on the rebound from the support of 1.0992. For buyers to regain their advantage, a breakthrough and consolidation above the level of 1.1237 are required, which will allow you to count on and update the highs of 1.1295 and 1.1344, where I recommend fixing the profits.
To open short positions on EURUSD, you need:
Sellers are acting exactly according to the scenario, and have already reached the support of 1.1158, which I paid attention to in my morning forecast. Its breakdown will lead to a larger decline in EUR/USD and a test of the minimum of 1.1063, around which active actions of euro buyers will be noticeable. Only fixing below this range will increase pressure on the euro, which will open a direct path to the lows of 1.0992 and 1.0957, where I recommend fixing the profits. In the scenario of EUR/USD growth in the second half of the day, I recommend returning to short positions on the formation of a false breakdown in the area of 1.1237, and selling the euro for a rebound is best only after updating the highs of 1.1295 and 1.1344.
Signals of indicators:
Moving averages
Trading is conducted below 30 and 50 moving averages, which indicates that sellers remain in the market.
Bollinger Bands
A break in the lower border of the indicator around 1.1158 will lead to a further decline in the euro, while growth will be limited in the upper level of 1.1237.
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
The material has been provided by InstaForex Company – www.instaforex.com
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