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To open long positions on EURUSD, you need:
In the first half of the day, we did not wait for the formation of signals to buy the European currency, although the data on the German economy was to the liking of the bulls. On the 5-minute chart, we can see how buyers of the euro came close to the resistance of 1.1842 and have already tested it, having received a fairly powerful rebuff. The task for the second half remains the same: it is necessary to consolidate above the level of 1.1842 and form a point from it to open long positions, which will necessarily lead to a test of the highs of 1.1884 and 1.1920, where I recommend fixing the profits. However, now a lot will depend on the report on consumer confidence in the United States. Good indicators will spoil the mood of euro buyers. In the scenario of EUR/USD decline, it is best to postpone long positions until the support test of 1.1787. In case of lack of activity and rapid growth of the euro from this level, I recommend waiting for the update of a larger minimum of 1.1755 and opening long positions from there immediately on the rebound in the expectation of a correction of 20-30 points within the day.
To open short positions on EURUSD, you need:
Sellers have already protected the resistance of 1.1842, preventing the bulls from breaking above this range in the first half of the day. However, there was no formation of a signal to open short positions. Therefore, this scenario is best played only after an unsuccessful consolidation above the level of 1.1842, when the bears' stop orders will be issued. A false breakout of 1.1842 forms a good entry point into sales, which will quickly push the pair to the area of the minimum of 1.1787, where I recommend fixing the profits. In case of a more than good report on consumer sentiment in the US, we can expect a decline in EUR/USD to the low of 1.1755. If the bulls manage to win back the resistance of 1.1842, I recommend that you do not rush to sell the euro, but wait for the update of the maximum in the area of 1.1884 and open short positions from there in the expectation of a correction of 20-30 points within the day.
Signals of indicators:
Moving averages
Trading is just above the 30 and 50 daily moving averages, indicating that the bulls are trying to return to the market.
Note: The period and prices of moving averages are considered by the author on the hourly chart H1 and differ from the general definition of the classic daily moving averages on the daily chart D1.
Bollinger Bands
Breaking the upper limit of the indicator in the area of 1.1830 may lead to another attempt to increase the euro. If the pair declines, the lower border of the indicator in the area of 1.1780 will provide support.
Description of indicators
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