FX.co ★ EUR/USD: plan for the European session on February 8. Euro buyers are in no hurry to return to the market

To open long positions on EURUSD you need:

Euro buyers come to their senses after weak fundamental statistics were published throughout the week. At the moment, the task is to consolidate above the resistance of 1.1343, which may lead to an increase of the EUR/USD to the area of a high of 1.1368 with the main goal of updating the level of 1.1394, where I recommend taking profits. In the case of a downward movement, support will be found in the area of 1.1317, but it is best to buy the euro from there provided that there is a false breakdown. It is possible to open long positions on a rebound from a low of 1.1292.

To open short positions on EURUSD you need:

The bearish trend is slowing. An unsuccessful consolidation and return under the resistance level of 1.1343 will be the first signal to sell the euro, and the target will be the support area of 1.1317, where I recommend taking profits. In case of growth above 1.1343 in the first half of the day and release of good fundamental data for Germany and Italy, the upward correction may intensify. In this scenario, it would be best to consider short positions in EUR/USD to rebound from a high of 1.1368 and 1.1394.

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 1.1358 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