To open long positions on EURUSD you need:
To return to the buyers’ market, consolidation in the first half of the day is needed above 1.1211 resistance, which will lead to a larger upward correction in the area of yesterday’s maximum of 1.1242 and to its updating in the area of 1.1286, where I recommend taking profits. However, the entire emphasis will be shifted to the Fed’s decision, therefore, in the case of a pair lowering scenario under the support level of 1.1186, you can take a long look at a rebound from the minimum of 1.1161 and 1.1138.
To open short positions on EURUSD you need:
Bears will try to break through the support of 1.1186 in the first half of the day after the release of data for the euro area, which will lead to the preservation of the downward trend and the test of 1.1161 and 1.1138 lows, where I recommend taking profits. If the EUR / USD pair is able to return to the resistance of 1.1211, then in such a scenario, it is best to rely on short positions after updating the maximum of 1.1242 or to rebound from a larger level of 1.1286.
Trade is conducted below 30 and 50 moving averages, which indicates a possible continuation of a bear market, but the Fed’s decision may drastically change the situation.
Indicator volatility gradually decreases, as it often happens before the release of important news.
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
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