FX.co ★ EUR/USD: plan for the European session on February 7. Euro buyers are in no hurry to return to the market

To open long positions on EURUSD you need:

Weak statistics on the eurozone at the beginning of the week maintains pressure on the European currency. Several attempts to resume the upward correction in the euro yesterday were unsuccessful. At the moment, buyers need to return to the resistance level of 1.1369 and gain a foothold on it. Only this will lead to the formation of demand for the euro and an upward correction in the area of resistance at 1.1397, where the 50-day moving average runs and where I recommend taking profits. In case of weak data for Germany, it is best to consider new long positions in EUR/USD after updating the weekly lows around 1.1340 and 1.1317.

To open short positions on EURUSD you need:

While trading is conducted under the resistance level of 1.1369, the pressure on the euro will continue, and the main goal of the bears for the first half of the day will be the test and breakthrough of support for 1.1340, which will only strengthen the downward trend and lead to an update of the low of 1.1317, where I recommend taking profits. Weak data on industrial production in Germany could make it possible for us to play this scenario. In case of a return and consolidation above the resistance of 1.1369, short positions can be returned to the rebound from a high of 1.1397, where there will also be profit-taking for long positions by short-term buyers. Failing to consolidate above 1.1369 will be a direct signal to open short positions in euros.

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 the case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.1390 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