FX.co ★ EUR/USD: plan for the European session on February 6. Weak data put pressure on the euro

To open long positions on EURUSD you need:

The previous day's statistics for the eurozone did not immensely delight buyers of the euro. At present, the first signal for opening long positions may be a false breakdown in the support area of 1.1395-1.1390, however, larger euro buyers will emerge at a new low in the area of 1.1369. The main task for the first half of the day will be an update of a large resistance in the area of 1.1432, where I recommend taking profits. The lack of important fundamental statistics can play on the side of sellers of the European currency, so I don't recommend to rush into buying.

To open short positions on EURUSD you need:

Sellers will try to break below support 1.1395-1.1390, consolidation under which will increase the pressure on the euro and will lead to the update of the new weekly lows around 1.1369 and 1.1342, where I recommend taking profits. In case the euro increases in the first half of the day, you can safely return to short positions on the rebound from the large resistance of 1.1432, where the 50-day moving average runs. The trend is downward, and the lack of important statistics can save negative market sentiment.

Indicator signals:

Moving averages

Trade is conducted below the 30-day and 50-day moving average, indicating that the bearish nature of the market remains.

Bollinger bands

In case of an upward correction, the upper border of the Bollinger Bands indicator around 1.1425 will be a good level for opening short positions in the euro.

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