To open long positions on EUR / USD, you need:
The press conference of Mario Draghi was of a "precautionary" nature, which, as expected, led to a decline in the euro. At the moment, it is best to consider long positions after the formation of a false breakdown in the support area of 1.1307 or to rebound from a new minimum in the area of 1.1272. The main task will be a breakthrough and fixation on the resistance of 1.1339, which will lead to a larger upward correction in the area of 1.1376 and 1.1411, where I recommend fixing the profits. However, it is worth noting that today's weak German data may push the euro even lower, to a minimum area of 1.1223.
To open short positions on EUR / USD, you need:
The formation of a false breakdown in the resistance area of 1.1339 will be the first signal to open short positions in the euro, and fixing below the support of 1.1307 will only reinforce the bearish trend, which will lead to the renewal of new annual lows around 1.1272 and 1.1223, where I recommend fixing the profits. In the case of a good report on Germany and the growth of EUR / USD above the resistance of 1.1339, short positions can be considered to rebound from the large level of 1.1376 and 1.1411.
Indicator signals:
Moving Averages
Trade is conducted below the 30-day and 50-day moving average, which indicates the bearish nature of the market.
Bollinger bands
In the event of a decline in the euro, support will be provided by the lower limit of the Bollinger Bands indicator at 1.1280. Short positions at once for a rebound can be opened from the upper border of the indicator in the area of 1.1362.
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
