To open long positions on EURUSD you need:
Bad data from Ifo and a good report on the number of orders for durable goods, all this led to the strengthening of the US dollar in the afternoon on Monday. Currently, the emphasis will be placed on data on German GDP, which may lead to a further decrease in the euro. Therefore, it is best to open long positions after the support test of 1.1086, subject to the formation of a false breakdown there. If there are no active purchases in this range, I recommend postponing long positions until the low of 1.1055 is updated. An equally important task for the first half of the day for buyers is also to return to the resistance level of 1.1119, which will then make it possible to update a high of 1.1151, where I recommend taking profits.
To open short positions on EURUSD you need:
Bears will count on a weak report on Germany's GDP, which is likely to be so. Therefore, when a false breakdown is formed in the resistance area of 1.1119, short positions in euros can be opened, and the main goal will be to update the low of 1.1086, which sellers did not reach yesterday. Consolidating below this range will further increase pressure on EUR/USD and lead to a further downward trend in the support area of last week 1.1055, where I recommend taking profits. In a growth scenario above the resistance of 1.1119 in the morning, short positions can be returned immediately to a rebound from the resistance of 1.1151.
Signals of indicators:
Moving averages
Trading below 30 and 50 moving averages, which indicates the return of euro sellers to the market.
Bollinger bands
A break of the lower boundary of the indicator in the region of 1.1090 will only increase pressure on the euro. Growth will be limited by the upper level in the area of 1.1120.
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
