Reason for trading strategy:
EURUSD is approaching its support at 1.2070 (100% x2, 50% , horizontal pullback support, support) where we expect price to bounce and rise to its resistance at 1.2293 (61.8% , horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 1.2199 (61.8% , 38.2% , horizontal pullback resistance).
(55, 5, 3) is approaching its support at 4.04% where a corresponding bounce is expected.
I would wait for the 1.22 price area to go short and then add to my position after it breaks the 1.207 area...EUR GDP and US FOMC Rate Decision new coming out next week, hopefully they support the setup.