To open long positions on EURUSD, you need:

From a technical point of view, almost nothing has changed. Inflation data from Germany coincided with forecasts of economists and did not impress traders. The consumer price index grew by only 0.1% in October, as in September 2019. The bulls need a return to the resistance level of 1.1025, which they could not reach in the morning. Only a weak report on US consumer prices can lead to the realization of this scenario. The breakdown of the resistance of 1.1025 forms a larger upward correction with the update of the highs of 1.1054 and 1.1081, where I recommend taking the profits. If the pressure on EUR/USD returns after the report, then I recommend looking at long positions only after updating the new local minimum of 1.0972 or buy immediately on the rebound from the support of 1.0943.

To open short positions on EURUSD, you need:

Sellers coped with the morning task and did not let the pair above the resistance of 1.1025. A good report on inflation in the US and the formation of a false breakdown at this level in the afternoon will be a direct signal to sell the euro. However, the more important task of the bears will be a breakthrough and consolidation below the psychological mark of 1.0000, around which trade has been conducted for several days. The breakdown of this level will open EUR/USD a direct road to the lows of 1.0972 and 1.0942, where I recommend taking the profits. The pressure on the euro will ease only if the bulls manage to regain the resistance of 1.1025. In this case, with an upward correction, the first active short positions can be observed near the maximum of 1.1054, but larger sellers will prefer to return to the market only after the test of the area of 1.1081.

Indicator signals:

Moving Averages

Trading is conducted in the area of 30 and 50 moving averages, which indicates the lateral nature of the market before the important US data.

Bollinger Bands

Volatility has decreased significantly, which does not give 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