To open long positions on EURUSD, you need:
Data on low manufacturing activity in Germany and the eurozone put pressure on the European currency in the first half of the day, which did not allow the bulls to get above the resistance of 1.1147. However, from a technical point of view, nothing has changed. A surge in volatility is possible during Mario Draghi's press conference, at which the ECB head will announce his departure and possibly signal further monetary easing. The focus remains on the level of 1.1116, the formation of a false breakdown will be a signal to open long positions in the euro. However, the main task of the bulls is to break and consolidate above the resistance of 1.1147, which will return the demand for EUR/USD and lead to a test of the weekly maximum of 1.1178. However, a more distant target of buyers will be the level of 1.1226, where I recommend fixing the profits. However, without good news on Brexit, building a major upward momentum will be almost impossible. If the pair returns to the support of 1.1116, it is best to return to long positions from the lows of 1.1090 and 1.1055.
To open short positions on EURUSD, you need:
The formation of a false breakdown in the resistance area of 1.1147 in the first half allowed the bears to pull the initiative to their side. I paid attention to this in my morning forecast. However, the main task is to break through and consolidate under the support of 1.1116. If the bears manage to break below this range, most likely the demolition of a number of stop orders of bulls will collapse EUR/USD to the new support of 1.1090 and 1.1055, where I recommend taking the profits. In the scenario of growth above the resistance of 1.1147, which can be implemented only in the case of good news on the Brexit agreement, I recommend returning to short positions only after updating the weekly maximum around 1.1178, or immediately on the rebound from the resistance of 1.1226.
Indicator signals:
Moving Averages
Trading is conducted around 30 and 50 moving averages, which indicates market uncertainty.
Bollinger Bands
The breakthrough of the upper limit of the indicator in the area of 1.1147 will provide the market with new buyers of the euro.
Description of indicators
MA (moving average) 50 days – yellowMA (moving average) 30 days – greenMACD: fast EMA 12, slow EMA 26, SMA 9Bollinger Bands 20