To open long positions on EURUSD, you need:
The bears continued to act actively after forming a false breakdown in the resistance area of 1.0909, to which I paid attention, and then recommended opening short positions. The bulls also failed to stop the fall in the support area of 1.0822. The 5-minute chart shows a rebound from this level of more than 60 points up, but the repeated test of 1.0822 led to a breakdown of this range. At the moment, given the absence of important fundamental statistics in the second half of the day, the bulls need to protect the minimum of 1.0780, from which there is no special activity from buyers yet. Only the formation of a false breakdown on it will allow you to count on a small return of EUR/USD to the resistance of 1.0860, where I recommend fixing the profits. In the scenario of a further decline in the euro on the trend, it is best to look at purchases for a rebound from the minimum of 1.0740 and 1.0710. However, you should not expect growth of more than 30-40 points from these levels.
To open short positions on EURUSD, you need:
The bears perfectly coped with the task of forming a false breakdown in the resistance area of 1.0909, and then returned to the market again after a correction from the resistance of 1.0860, to which I paid attention, which is clearly visible on the 5-minute chart. Now all the focus is on the breakdown of the support of 1.0780, which will lead to a further downward movement of EUR/USD to the area of lows 1.0740 and 1.0711, where I recommend fixing the profits. In the scenario of an upward correction of the euro in the second half of the day, all the same sales can be viewed from the resistance of 1.0860, or sell immediately on the rebound after the test of the maximum of 1.0909.
Signals of indicators:
Moving averages
Trading is conducted below 30 and 50 moving averages, which indicates a further decline in the euro on the trend.
Bollinger Bands
In the case of an upward correction in the second half of the day, the average border of the indicator around 1.0870 will act as a resistance.
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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