To open long positions on EURUSD you need:
A weak report from ADP kept the European currency buyers in the market, which reached another important resistance level at 1.0965. At the moment, the main upward movement of the euro will depend on the PMI data for the eurozone services sector, as well as on the composite eurozone PMI index. Good data will help the bulls break above the resistance level of 1.0965, which will lead to the preservation of the upward trend and the pair from reaching the highs of 1.0993 and 1.1022, where I recommend taking profit. In a scenario of weak data, which cannot be ruled out, given the current state of the eurozone economy, it is best to return to long positions in EUR/USD on a false breakdown from the level of 1.0935, or buy on the rebound from yesterday's major support at 1.0905.
To open short positions on EURUSD you need:
All that is required today by euro sellers in the morning is the formation of a false breakdown in the resistance area of 1.0965 and poor data on the services sector, especially Germany. In the coupe, this will be a good signal to open short positions, and the level of 1.0965 will become the upper limit of the side channel, in which the euro will become stuck until the end of the week. The aim of the sellers will be the support of 1.0935, the breakdown of which will quickly return EUR/USD to the area of yesterday's low of 1.0905, where I recommend taking profit. With a growth scenario above 1.0965, it is best to return to short positions from a resistance of 1.0993, or sell for a rebound from a larger high of 1.1022.
Signals of indicators:
Moving averages
Trading is conducted above 30 and 50 moving average, which indicates the likely continuation of the upward correction.
Bollinger bands
In the event of a EUR/USD decline in the morning, support will be provided by the lower boundary of the indicator around 1.0925. Growth will be limited by the upper boundary at 1.0980.
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
