To open long positions on EUR / USD pair, you need:
Speech by the Fed Chairman did not lead to serious changes in the market and only slightly strengthened the position of the US dollar against the euro. At the moment, buyers need a quick return to the resistance level of 1.1538, on which the further continuation of the uptrend directly depends on, and update the highs of 1.1573 and 1.1605, where I recommend taking profits. In the event of a euro decline in the first half of the day, purchases can be returned on a false breakdown from 1.1498 or to rebound from a minimum of 1.1465.
To open short positions on EUR / USD pair, you need:
European currency sellers are required to form a false breakdown at the resistance level of 1.1538, which will lead to the formation of the upper limit of the new downward channel and will push the EUR / USD pair to the area of 1.1498 and 1.1465 lows, where I recommend taking profits. However, a larger decline will depend on data on US inflation, which is expected in the afternoon. In case of growth above the resistance level of 1.1538, short positions in euro can return to the rebound from the highs of 1.1573 and 1.1605.
Trade is conducted in the area of 30- and 50-day moving averages, which indicates a possible side trend.
Growth is limited by the upper line of the Bollinger Bands indicator, which is located in the area of 1.1538, where you can open short positions during the formation of a false breakdown. The downward trend will be limited by the lower boundary of the indicator in the 1.1490 area.
More details about the forecast can be found in the video review.
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 market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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