To open long positions on EURUSD, you need:
The euro rose slightly after the European Central Bank left rates unchanged but then resumed its fall, as the regulator signaled a likely decline in the future. An unsuccessful consolidation above the resistance of 1.1154 led to a new sale in EUR/USD and a breakout of the support of 1.1129. At the moment, buyers can only hope for the performance of the ECB President and the first level of 1.1105. Only the formation of a false breakdown on it with a soft tone of Mario Draghi's statements will retain at least some hope for a return and consolidation above the resistance of 1.1130. If the euro continues to fall, which is likely to happen, and activity will not be noticeable at the level of 1.1105, it is best to consider new long positions to rebound from the lows of 1.1079 and 1.1034.
To open short positions on EURUSD, you need:
The bears waited for the correction of the pair to the resistance area of 1.1154, formed a false breakout there, and the ECB continued the bearish trend, which led to a breakthrough and consolidation below the support of 1.129. In the afternoon, the President of the European Central Bank Mario Draghi will speak, who should shed light on the further situation with monetary policy. Statements by the President of the Central Bank on the resumption of the program to stimulate the economy will form a new pressure on the EUR/USD and will lead to an update of the lows of 1.1105 and 1.1079, where I recommend fixing the profit. Larger support levels are located at the lows of 1.1034 and 1.0990, which is also a psychological mark. In the scenario of the pair growth after Draghi's performance, the first level for opening short positions in the area of 1.1154, just above which the resistance of 1.1183 passes.
Indicator signals:
Moving Averages
Trading is below 30 and 50 moving averages, which indicates the predominance of euro sellers in the market.
Bollinger Bands
In the case of an upward correction, the upper limit of the indicator in the area of 1.1145 will act as a resistance.
Description of indicators
MA (moving average) 50 days – yellowMA (moving average) 30 days – greenMACD: fast EMA 12, slow EMA 26, SMA 9Bollinger Bands 20