To open long positions on EURUSD, you need:
As noted in my morning review, if the first signs of a recovery in manufacturing activity in the eurozone countries appear, the euro may strengthen, which is what happened. However, sellers took advantage of this moment, and a false breakdown of the level of 1.1104 led to a downward movement in the pair. At the moment, buyers of the euro held the level of 1.1068, from which I recommended to buy in the morning, but there is no larger demand for the euro yet. Until the moment the trade is conducted above the range of 1.1068, we can expect an upward correction to the resistance area of 1.1104, but the main goal of the bulls will be a maximum of 1.1130, where I recommend taking the profit. In the case of good reports on the service sector and production activity in the US, as well as the breakthrough of the support of 1.1068, it is best to return to long positions after a test of a minimum of 1.1028, and also buy for a rebound from the area of 1.0990.
To open short positions on EURUSD, you need:
The sellers of the euro are faced with the task of overcoming the support of 1.1068, the repeated test of which will certainly lead to its breakdown and further movement of EUR/USD down to the area of the minimum of 1.1028. However, the larger downward trend to the support area of 1.0990, where I recommend taking profit, will be directly related to the report on production activity in the US, which will be released in the afternoon. Under the scenario of the euro growth, short positions can also be considered on a false breakdown from the level of 1.1104 or sell for a rebound from a larger resistance 1.1130.
Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the market.
The breakthrough of the lower limit of the indicator in the area of 1.1068 will provide sellers with new forces. The growth of the euro will be limited to the upper limit around 1.1105.
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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