EUR/USD hitting 1.0569 prompted a buy signal in the market. Coincidentally, the MACD line just started to move above zero, so the pair rose by more than 20 pips.
Most likely, the market was influenced by the speech of ECB representatives. No other signal appeared for the rest of the day. Yesterday’s speech of ECB chief Lagarde had little effect on the market, so volatility remained low in EUR/USD. Meanwhile, data on orders for durable goods and pending sales in the US real estate market supported dollar, but did not lead to a very sharp price increase. Today, an important statistics will be released, that is, a report on consumer climate in Germany.
This may help buyer cope with the resistance level of 1.0590. Also expected today are the speeches of ECB President Christine Lagarde and her colleagues Philip Lane and Fabio Panetta. Any hints of a more active fight against inflation will help buyers resume the growth of the pair, especially since in the afternoon, there is nothing that would provide significant support to the dollar. The upcoming data on US foreign trade balance and consumer confidence will have little impact on the market, so it is more ideal to take long positions, counting on the resumption of the uptrend of the pair, most likely towards new weekly highs.
For long positions: Buy euro when the quote reaches 1.0590 (green line on the chart) and take profit at the price of 1.0637 (thicker green line on the chart). There is a chance for a rally today, but only after strong statistics from Germany. Also, make sure that when buying, the MACD line is above zero or is starting to rise from it. Euro can also be bought at 1.0565, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0590 and 1.0637. For short positions: Sell euro when the quote reaches 1.0565 (red line on the chart) and take profit at the price of 1.0518.
Pressure will return if Germany reports weak economic data and if the attempt to reach new weekly highs fail. Nevertheless, when selling, make sure that the MACD line is below zero or is starting to move down from it. Euro can also be sold at 1.0590, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.0565 and 1.0518