To open long positions on EUR / USD pair, you need:
Today, the Fed will announce its interest rate decision, which could lead to a further fall in the EUR/USD pair. It is best to consider long positions in euro after the formation of a false breakdown in the support area of 1.1423 or to rebound from a minimum of 1.1390, where more buyers are concentrated. The main task for the first half of the day will be the breakdown and consolidation above the resistance of 1.1452, which will lead to a larger increase in the euro in the area of this week’s maximum of 1.1485, where taking profits are recommended.
To open short positions on EUR / USD pair, you need:
Sellers need to form a false breakdown at the resistance level of 1.1452, in case of euro growth in the first half of the day. Also, it requires a consolidation below the important support level of 1.1423, which limits the downward correction. The break of 1.1423 will also lead to a breakdown of the lower boundary of the rising channel, which will open a direct road to the area of minimum 1.1390 and 1.1355, where taking profits are recommended. If the euro rises above resistance of 1.1452 in the first half of the day, sales can return when it rebounds from 1.1485.
Trade has moved below the 30- and 50-day average, which indicates an unlikely change in market sentiment. The 30-day average today will act as resistance.
If the euro rises in the first half of the day, the upper limit of the Bollinger Bands indicator located at the area of 1.1452 will act as a resistance, from where you can sell the euro immediately to rebound. Limit the downward correction to the lower limit of the indicator in the area of 1.1405.
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