EURUSD on support. Action plan

After an unsuccessful attempt to break the resistance, the price of the currency pair returned to declines driven by yesterday's US data. Investors stopped at the support marked in the blue circles in the image. Of course, we do not "catch the falling knives", so we wait for the appropriate signal. Ideally, we should see a diagram like the one shown in the second image of the M5 time interval. Then our risk is max 10 pips and we do not catch the hole. Number one is a breakout of consolidation, number two is our signal to increase the price, number three is entry. Simple isn't it?

British Pound rebound chance

Yesterday, almost every US dollar currency pair fell into a heavy thrust driven by macroeconomic data. Today the situation for this pair is even more serious because the market expects data only for Great Britain, which almost every time causes strong price fluctuations. At the moment, we have the first signal from the market that gives us a chance to go long. Unfortunately, there is still half an hour left before the opening of the European session, and at the opening of the main markets the signals are misleading. Nevertheless, in the pictures, I showed what I expect and where there is a chance to trade with a relatively low risk. However, today remember that the market does not behave as it does most of the time, and investors trying to predict the data may move the rate in any direction without logical justification.

edit. I made a mistake in interpreting the chart. Until the price breaks through the last high at 2 am, we still have a downward trend.

DAX30 

Daily S3 - 15425

Daily S2 - 15490

Daily S1 - 15590

Daily PP - 15650

Daily R1 - 15750

Daily R2 - 15810

Daily R3 - 15900