To open long positions on EURUSD, you need:
The euro continues to stand still, and the attempt to grow in the first half of the day was immediately stopped by a weak report on the volume of orders in the German industry, which fell immediately in December by 2.1% compared to November 2019. Euro buyers do not yet have news on which to make at least some movement up. The morning divergence on the MACD indicator continues to form, and much will depend on whether there will be a buyer's activity after yesterday's low update. Only a false breakdown of the support of 1.0993 will signal the opening of long positions in the euro to return to the resistance of 1.1022. An equally important task for the bulls will be to break through and consolidate above this range, which will open a direct road to the area of the maximum of 1.1046, where I recommend fixing the profits. In the scenario of a support breakout of 1.0993, it is best to catch euro purchases only after updating the lows of 1.0964 and 1.0943.
To open short positions on EURUSD, you need:
Given that traders ignored another speech by the President of the European Central Bank, Christine Lagarde, the focus will shift to reports on the US labor market, but the weekly data is unlikely to seriously affect the market. Therefore, it will be more correct to talk about the predominance of bears. A breakout and consolidation below the support of 1.0993 will quickly push the euro down to the lows of 1.0964 and 1.0943, where I recommend taking the profits. However, do not forget about the divergence that is formed on the MACD indicator and that can stop the downward movement. In the scenario of another attempt at an upward correction of EUR/USD, you can expect to sell after the resistance update of 1.1022, provided that a false breakdown is formed there or open short positions immediately for a rebound from the more powerful area of 1.1046.
Signals of indicators:
Moving averages
Trading is conducted below the 30 and 50 moving averages, which indicates a predominance of sellers.
Bollinger Bands
Volatility has decreased significantly and there are no signals based on the indicator yet. A break of the upper border at 1.1010 will lead to a more powerful bullish pull, but a break of the lower border at 1.0993 will quickly push the euro even lower.
Description of indicators
Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.MACD indicator (Moving Average Convergence / Divergence - Moving Average Convergence / Divergence) Fast EMA Period 12. Slow EMA Period 26. SMA Period 9Bollinger Bands (Bollinger Bands). Period 20