To open long positions on EURUSD you need:
Such a sharp reversal of the euro in the other direction can be stopped only by the ECB President Mario Draghi, whose speech is scheduled for today. In the meantime, long positions are best considered after a downward correction to the support area of 1.1381 or to rebound from a low of 1.1337. The main task of buyers for the first half of the day will be to keep the level of 1.1411, trading above which maintains good prospects for continued growth of the EUR/USD to the area of a high of 1.1452 and 1.1490, where I recommend taking profits.
To open short positions on EURUSD you need:
Such a major purchase on the reverse of the trend can help the bulls in the future. Therefore, it is best to consider short positions in the euro after updating the next highs in the area of 1.1452 and 1.1490. The main task of bears in the first half of the day will be to return to the level of 1.1411 and fixation under it, which will be a signal to sell. ECB President Mario Draghi's speech could push the euro into the support area of 1.1381 and 1.1337, where I recommend taking profits on short positions.
Indicator signals:
Moving averages
Trade is conducted above the 30-day and 50-day moving averages, which indicates a trend reversal.
Bollinger bands
In the event of a decline in the euro, support will be provided by the lower limit of the Bollinger Bands indicator in the area of 1.1354, from which you can buy immediately for a rebound. Short positions at once for a rebound can be opened from the upper border of the indicator in the area of 1.1452.
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
