Source: Forex Analysis
To open long positions on EUR/USD pair, you need:
The report on the growth of the positive trade balance led to the strengthening of the euro in the morning, continuing the bullish momentum that was formed yesterday afternoon. At the moment, the bulls have managed to gain a foothold above the resistance of 1.1080, which saves the chance of a repeated return and breakdown of a maximum of 1.1115. Only in this scenario can we expect a larger uptrend to the area of levels 1.1151 and 1.1189, where I recommend taking profits. However, growth will also be associated with a report on retail sales, which will be released before the opening of the North American session. With the downward correction of the EUR/USD pair after the above report and the pair returned to the level of 1.1082, it is best to consider new long positions for a rebound from the lows of 1.1053 and 1.1020.
To open short positions on EUR/USD pair, you need:
Sellers will hope for good retail sales data that will return demand for the US dollar, and the formation of a false breakdown in the resistance area of 1.1115 will be an additional bearish signal to open short positions. The first goal will be the support of 1.1082 and a breakthrough will increase pressure on EUR/USD pair and will also lead to profit-taking at the end of the week. A downward correction to the minimum area of 1.1053 and 1.0989, where I recommend taking profits. If the demand for the euro continues in the afternoon, it is best to look for short positions in this scenario for a rebound from the highs of 1.1151 and 1.1189.
Signals of indicators:
Trading is above 30 and 50 moving averages, which indicates the continuation of yesterday’s bull market.
In case of a downward correction, the lower border of the indicator in the area of 1.1045 will provide good support to the pair.
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
The material has been provided by InstaForex Company – www.instaforex.com