To open long positions on EUR/USD pair, you need:
The euro buyers tried several times yesterday to save the situation, especially after a weak report on the American economy, but it was not possible to resume growth. At the moment, it is best to return to long positions on a false breakdown from the level of 1.1348, after updating the minimum of yesterday or to rebound from larger support of 1.1317. The main task of buyers is to return to the resistance of 1.1374, which will allow to break through the upper limit of the new downward channel and continue the growth of the euro to the highs of 1.1400 and 1.1430, where I recommend taking profits.
To open short positions on EUR/USD pair, you need:
Weak data on the volume of orders for durable goods did not allow the bears to continue forming the correction. At the moment, it is best to consider short positions after the formation of a false breakdown in the area of resistance at 1.1374 or after a successful breakdown and consolidation below the support of 1.1348, which will lead the EUR/USD pair to new 1.1317 and 1.1286 minimums, where I recommend taking profits. In the case of growth above 1.1374, the 1.1400 area will be a good level for opening short positions.
Trade is conducted below 30 and 50 moving averages, which indicates the formation of a downward correction.
Upward correction will be limited to the upper boundary of the channel in the area of 1.1380. A break of the lower border around 1.1348 will lead to a new sale of the euro.
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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