To open long positions on EUR /USD pair, you need:
The buyers of the European currency have the last chance to reverse the formation of the downward trend. To do this, you need to get above the resistance of 1.1500, which will be a signal to buy euros in order to update the weekly maximum around 1.1541, where taking profits are recommended. In the event of a decline in EUR / USD, it is possible to count on new purchases in the area of 1.1463 but only after the formation of a false breakdown there. In a different scenario, it is best to open long positions to rebound from a new low of 1.1399.
To open short positions on EUR / USD pair, you need:
Sellers will try to form a false breakdown in the area of 1.1500, which will lead to another wave of euro decline. The main goal will be the breakdown and consolidation below the support level of 1.1463, which will resume the downward trend and allow testing the new monthly minimums of 1.1399 and 1.1351, where taking profits on short positions are recommended. If the euro rises above 1.1500 in the first half of the day, you can immediately return to sales to rebound from a maximum of 1.1541.
The price is stuck between 30 and 50 average, which indicates the uncertainty in the market. However, sellers have the advantage as the downward direction of averages.
The Bollinger Bands indicator does not give signals when entering the market and indicates that the volatility remains low. The lower border, located in the 1.1470 area, will be another support in case of a decline in the euro.
Description of indicators
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.