To open long positions on EURUSD, you need:
Yesterday's minutes of the Federal Reserve System certainly affected investors who decided not to postpone the purchase of risky assets "in the long box", and not wait for news on trade negotiations between the US and China. The breakdown of the resistance of 1.1005 quite predictably led to an upward trend, which I drew attention to in my morning review. At the moment, the growth of EUR/USD is limited by the resistance of 1.1033, and only going beyond its margins will keep the growth in the pair, which will lead to an update of the highs of 1.1067 and 1.1109, where I recommend taking the profits. In the scenario of a downward correction, which can be formed after the release of data indicating an increase in inflation in the United States, it is best to return to long positions after the update of the support of 1.1005 or a rebound from the larger minimum of 1.0975.
To open short positions on EURUSD, you need:
Sellers are in no hurry to return to the market, focusing on the US inflation report and the US-China talks. Good data can increase the pressure on the euro, and the formation of a false breakdown in the resistance area of 1.1033 will be a direct signal to open short positions, counting on the update of the support of 1.1005. However, a more important task, which is realized in the scenario of failed negotiations between the US and China, will be to consolidate below the support of 1.1005, which will quickly push EUR/USD down to the lows of 1.0975 and 1.0943, where I recommend taking the profits. If the demand for the euro continues in the afternoon, it is best to return to short positions only after the test of the maximum of 1.1067 and a rebound from the area of 1.1109.
Trading is above the 30 and 50 moving averages, indicating the first signs of a renewed bullish market.
In the case of a decline in the euro, the indicator's midline will support the area around 1.0995, and you can buy immediately for a rebound from the lower border at 1.0955.
Description of indicators
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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