To open long positions on EUR / USD pair, you need:
Weak reports from the IFO did not support the euro, however, the buyers did not stand aside, after it managed to form new support around 1.1195 and prevented the yesterday's minimum update. The challenge for the North American session will be a breakthrough and consolidation above the resistance of 1.1225, which will lead to the formation of a new upward correction with an update of the maximum of 1.1247 and 1.1262, where I recommend taking profits. In the case of a second EUR/USD decline in the second half of the day to the support area of 1.1195, long positions from this level are best to look at a false breakdown or buy a rebound from a larger range, which is located in the 1.1175 area.
To open short positions on EUR / USD pair, you need:
Bears require the formation of a false breakdown in the area of 1.1225, where the moving averages are also concentrated, which will keep the pair in a side channel and leave the market on the side of euro sellers. The main task for the second half of the day will be a breakthrough and consolidation below the support of 1.1195, which will lead to a new wave of EUR/USD sales to the area of 1.1175 and 1.1149 minimums, where I recommend taking profits. f the growth scenario is higher than 1.1225, you can take a closer look at short positions after updating the resistance of 1.1247.
Indicator signals:
Moving averages
Trading is below 30 and 50 moving averages, which indicates the bearish nature of the market.
Bollinger bands
The volatility of the Bollinger Bands indicator is very low, which does not give signals to enter the market.
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