To open long positions on EURUSD you need:
Today, euro buyers have to rely on a good report on inflation in the eurozone, which can stop the current downward trend. A signal to open long positions will be a test of a large support level of 1.1195 with simultaneous formation of divergence on the MACD indicator, which is now being formed gradually. When breaking a low of 1.1195 and the lack of demand, it is best to return to long positions to rebound from the level of 1.1167. The main task of the bulls today will be the return and consolidation above the resistance of 1.1236 and the test of the high of 1.1261, where I recommend to take profits.
To open short positions on EURUSD you need:
The bears will most likely try to push the euro to a new weekly low in the 1.1195 area, but to maintain the downward impulse, weak inflation data are required, which will help to consolidate below 1.1195, which will lead to a further decrease in the pair to lows of 1.1167 and 1.1138, where I recommend taking profits. With the EUR/USD growth scenario in the first half of the day after the inflation report, you can take a closer look at short positions from the resistance of 1.1236 on a false breakdown, or sell the euro immediately to rebound from a high of 1.1261.
Trade is conducted below 30 and 50 moving averages, which indicates a further decline in the euro, subject to a breakdown of a low of 1.1195.
An unsuccessful break of the lower boundary of the indicator in the area of 1.1205 could form an upward correction in the pair.
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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