To open long positions on EUR / USD pair, you need:
Another weak statistics on industrial production in Germany, as well as a revision by the European Commission of their GDP growth forecasts, led to the sale of the European currency in the first half of the day. At the moment, it is best to return to long positions to rebound from support 1.1317 or from a new minimum of 1.1292. The main task of buyers for the American session will be a return to the resistance level of 1.1340, which the Bulls have missed in the morning. Only after such, you can expect a correction in the area of 1.1365 and 1.1432, where I recommend to fix the profit.
To open short positions on EUR / USD pair, you need:
The downtrend continues and sellers need to form a false breakdown after correction in the area of resistance 1.1340, which will lead to a new sale of EUR / USD to the area of minimums 1.1317 and 1.1292, where I recommend taking profits. In case of consolidation above the level of 1.1430, a number of stop-orders of sellers may be demolished, which will lead to an increase in the euro in the area of resistance 1.1365, from where it is also possible to sell the euro immediately to rebound.
More in the video forecast for February 7
Indicator signals:
Moving averages
Trade is conducted below the 30- and 50-medium moving, which indicates the continued pressure on the euro.
Bollinger bands
In the case of EUR / USD growth, the upside potential may be limited by the average Bollinger Bands indicator around 1.1360.
Description of indicators
MA (moving average) 50 days - yellow
MA (moving average) 30 days - green
MACD: fast EMA 12, slow EMA 26, SMA 9
Bollinger Bands 20