To open long positions for EURUSD, it is required:

Euro buyers managed to stop the market decline yesterday only in the support area of 1.1215, from which they are now trying to build an upward correction. The main task in the first half of the day will be a break above the resistance of 1.1255, which can be formed after the release of a good report on inflation in Germany. In this scenario, the bullish market will be able to maintain momentum until the resistance of 1.1282 is updated, where I recommend to take profit. In the event of another wave of decline in the EUR/USD, bulls can expect the formation of a false breakthrough in the area of the low of 1.1215. Otherwise, it is better to open long positions by rebounding from 1.1180 and 1.1149.

To open short positions for EURUSD, it is required:

If the data for Germany is worse than economists' forecasts, the pressure on the euro may increase. An unsuccessful consolidation above the resistance level of 1.1255 will be a signal to open short positions in the euro in order to re-reduce this month's low of 1.1215 and its breakdown, which will sharply pull down the EUR/USD in the areas of 1.1180 and 1.1149, where I recommend to lock in the profit. In case the euro increases in the first half of the day above the resistance of 1.1255, short positions can be returned after an unsuccessful consolidation above the resistance of 1.1282 or a rebound from the high of 1.1322.

Indicator signals:

Moving averages

Trading is below the 30-day and 50-day average, indicating a continued decline in the euro. The 30-day and 50-day average today will act as resistance.

Bollinger Bands

The lower limit of the Bollinger Bands indicator, located around 1.1215, may limit the downward potential in the euro. The upper limit at 1.1280 will limit the bullish correction.

Indicator description

• Moving Average (average sliding) 50 days - yellow
• Moving Average (average sliding) 30 days - green
• MACD: fast EMA 12, slow EMA 26, SMA 9
• Bollinger Bands 20