Euro rallied yesterday even though the ECB gave dovish statements. In addition, US reported weak GDP growth in the 3rd quarter, so demand for dollar decreased sharply.

This bullish momentum may continue today if reports on the Euro area exceed expectations. Due out later are Q3 GDP data and CPI on the EU, as well as retail sales in Germany. In the afternoon, reports on US income and expenditures will be published, followed by data on consumer sentiment. Weak figures will put even more pressure on dollar, which will accordingly lead to further increase in EUR/USD.

For long positions:

Open a long position when euro reaches 1.1678 (green line on the chart) and take profit at 1.1724. Strong EU data will help push the price up.

Before buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.1657, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.1678 and 1.1724.

For short positions:

Open a short position when euro reaches 1.1657 (red line on the chart) and take profit at 1.1620. Weak GDP growth and slower inflationary pressures will put pressure on the pair.

Before selling, make sure that the MACD line is below zero, or is starting to move down from it. Euro could also be sold at 1.1678, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1657 and 1.1620.