To open long positions on EURUSD, you need:
From a technical point of view, nothing changed in the first half of the day. Buyers managed to hold the level of 1.1195 and even form a false breakout on it. If you look at the 5-minute chart, you will see how the bears made an attempt to break 1.1195 at the beginning of the European session, but this did not lead to anything, which preserves the chance of continuing the upward trend after the decision of the European Central Bank. However, much will depend on the regulator's forecasts for the future. While trading is above the level of 1.195, we can expect EUR/USD to grow to the highs of the week in the area of 1.1254, fixing on which will form a more powerful bullish impulse, which will lead to an update of the highs of 1.1295 and 1.1344, where I recommend fixing the profits. If the ECB forecasts are too negative, then I do not recommend rushing to open long positions after the breakout of the support of 1.1195. It is best to wait for the update of the minimum of 1.139 or buy immediately for a rebound from the level of 1.1085 with the aim of an upward correction of 30-35 points at the end of the day.
To open short positions on EURUSD, you need:
The report on retail sales in the Eurozone, which turned out to be much better than the forecasts of economists, probably kept from developing a bearish scenario in the first half of the day. From a technical point of view, nothing has changed. Only a break in the support of 1.1195 will increase pressure on the European currency, which will lead to a downward correction of EUR/USD to the area of 1.139, where I recommend fixing the profits. The bears' longer-term goal will be a minimum of 1.1085, the test of which may be the beginning of a new downward trend in the pair. If the demand for the euro persists in the second half of the day, and this depends directly on the measures that the European Central Bank will take today to revive the Eurozone economy, then it is best to consider new short positions only after the formation of a false breakout in the resistance area of 1.1254 or sell already on the rebound from the new highs of 1.1295 and 1.1344, and the higher the better. However, you should not expect more than a correction of 25-30 points from these levels.
Signals of indicators:
Moving averages
Trading is conducted in the area of 30 and 50 daily moving averages, which can lead to the end of the upward momentum in the short term.
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
A break in the lower border of the indicator around 1.1195 will increase pressure on the euro. Breaking the upper limit of the indicator in the area of 1.1254 will definitely lead to a new wave of euro growth.
Description of indicators
Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.MACD indicator (Moving Average Convergence / Divergence - moving average convergence / divergence) Fast EMA period 12. Slow EMA period 26. SMA period 9Bollinger Bands (Bollinger Bands). Period 20