To open long positions on EURUSD, you need:

Traders ignored weak data on inflation in the eurozone, which growth has once again slowed, which is bad news for the European Central Bank. Activity in the eurozone manufacturing sector also continued to decline in September this year. The bulls managed to return to the resistance of 1.0905, which I paid attention to in my morning forecast, but they have not managed to get above this level yet. All the focus will be on the afternoon and the US ISM manufacturing index report. Only a breakthrough and consolidation above the resistance of 1.0905 will lead to a larger upward correction to the highs of 1.0930 and 1.0958, where I recommend taking the profit. If the pressure on the euro returns, then a minimum level of 1.0873 remains a good level for purchases, as well as further support at 1.0840.

To open short positions on EURUSD, you need:

The bears coped with the morning task and did not let the pair go above the level of 1.0905, forming a false breakdown there. As long as trading is below this range, pressure on the euro will continue, and a good report on the ISM manufacturing index may even return EUR/USD to the low of the day, which will lead to an update of support 1.0873. A breakthrough in this range will push the pair to the lows of 1.0873 and 1.0840, where I recommend taking the profit. If the bulls manage to get above the level of 1.0905 in the second half of the day, it is best to look at short positions only after a false breakdown of the resistance of 1.0930 or sell EUR/USD immediately on the rebound from the maximum of 1.0958.

Indicator signals:

Moving Averages

Trading is below 30 and 50 moving averages, which indicates the continuation of the bearish trend.

Bollinger Bands

Volatility has decreased significantly, which is why there are no signals to enter the market.

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