To open long positions on EURUSD, you need:
This morning I talked about the fact that the weak reports on the GDP of the eurozone and Germany would push the euro down, which is what happened. Buyers in the afternoon still need to return and consolidate above the resistance of 1.1220, which can only happen after US retail sales data. In this scenario, we can expect a new bullish momentum in order to update the highs of 1.1251 and 1.1275, where I recommend fixing the profits. If the pressure on EUR/USD continues further, purchases can be returned after the formation of a false breakdown in the support area of 1.1188, and it is best to rebound from a minimum of 1.1166.
To open short positions on EURUSD, you need:
Sellers did not even have to defend the level of 1.1220, which indicates the absence of real euro buyers. The task for the second half of the day is a correction to the intermediate support area of 1.1188, however, the main purpose of the bears today will be to return and consolidate below this level, which will push EUR/USD down to the minimum area of 1.1166, where I recommend fixing the profits. In the case of the euro growth scenario, against the background of weak data on the US economy, it is best to open short positions on a rebound from the maximum of 1.1251.
Trading is conducted below 30 and 50 moving averages, which indicates the preservation of the downward correction.
In the case of euro growth in the second half of the day, it will limit the upward movement of the upper border of the indicator in the area of 1.1220.
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
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