Source: Forex Analysis
To open long positions on EURUSD, you need:
In the first half of the day, we could observe the release of several reports on the services sector of the eurozone countries, which, as one, showed growth, which allowed buyers of the European currency to hold their positions above yesterday’s low, forming support of 1.1067. The eurozone composite PMI rose to 50.6 points in November this year. At the moment, the entire focus is shifted to data on the services sector in the United States. Weak reports will allow the bulls to re-test the resistance of 1.1092 and break above this maximum, which will strengthen the demand for EUR/USD and lead to an update of the levels of 1.1109 and 1.131, where I recommend taking the profits. With another unsuccessful attempt to grow above 1.1092, you can count on long positions after the correction from the support of 1.1067, provided that a false breakdown is formed or buy for a rebound immediately from the minimum of 1.1035.
To open short positions on EURUSD, you need:
Like yesterday, the bears will expect an unsuccessful consolidation above the resistance of 1.1092, which will be the first signal to open short positions in the euro, the purpose of which will be the support of 1.1067. A good report on the growth of the service sector in the United States will help sellers in this. However, a return to support level of 1.1035 will be more important, where I recommend taking the profits. It is in the area of 1.1035 that euro buyers will try to build the lower border of the new upward channel. If the report disappoints buyers of the dollar, in the scenario of EUR/USD growth above the resistance of 1.1092 in the afternoon, it is best to consider short positions after the update of the maximum of 1.1109 or sell immediately on the rebound from the resistance of 1.1131.
Trading is just above the 30 and 50 moving averages, which keeps the chance of a rise in the euro.
A break of the upper border of the indicator, which coincides with the resistance of 1.1092, will also be a signal to buy the euro.
Description of indicators
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
- Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
- MACD indicator (Moving Average Convergence / Divergence – moving average convergence/divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9
- Bollinger Bands (Bollinger Bands). Period 20
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