To open long positions on EURUSD, you need:

The bulls slightly recovered their losses after a sharp Friday collapse of the pair. Now, in the second half of the day, buyers of the European currency need to try to get above the resistance of 1.1230, as only a consolidation at this level will maintain the bullish momentum that was formed in the first half of the day. A breakout of 1.1230 will open a direct path to the area of the maximum from June 16 - 1.1290, where I recommend fixing the profits since important fundamental data are not published in the North American session, which will limit the upward potential. The longer-term goal for the middle of the week will be a maximum of 1.1349. In the scenario of a decline in the euro in the second half of the day, you can still return to long positions on a false breakout of 1.1170 support or buy the euro/dollar pair immediately on a rebound from the minimum of 1.1106 in the expectation of an upward correction of 30-40 points by the end of the day.

To open short positions on EURUSD, you need:

Sellers are still in no hurry to return to the market amid the lack of important fundamental data after a major spike in volatility last Friday. Most likely, after a failed break of the resistance of 1.1230, the bears will be more active that the sawtooth movement will return the euro/dollar to this week's minimum in the area of 1.1170, where I recommend taking the profit. The bears' longer-term goal for the middle of the week is at least 1.1106. If the bulls manage to cope with the resistance of 1.1230 in the second half of the day, it is best to postpone short positions until the test of the area of 1.1290 in the expectation of correction of 30-40 points within the day.

Signals of indicators:

Moving averages

Trading is conducted in the area of 30 and 50 daily moving averages, which indicates the restoration of market equilibrium with a slight advantage for sellers of the euro.

Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.

Bollinger Bands

A break of the upper border of the indicator in the area of 1.1225 will lead to a new wave of euro growth. The pair's downward movement will be limited in the support area of 1.1170.

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