EUR/USD: plan for the European session on 10 January. Fed minutes disappoint traders

To open long positions on EURUSD you need:

The euro increased sharply amid statements by Federal Reserve officials and minutes from the last meeting, which pointed to a "pause" in further interest rate hikes in the US. At the moment, the breakthrough of resistance at 1.1573 or the formation of a false breakout in the area of 1.1548 will be good signals for opening long positions in EUR/USD in order to continue the upward trend and update the highs in the area of 1.165 and 1.1648, where I recommend taking profit. In the event of a deeper downward correction against the background of the European Central Bank's report on monetary policy, long positions can be looked at at the lows of 1.1523 and 1.1495.

To open short positions on EURUSD you need:

The bears have gone so far, and only a report from the ECB can return them to the market, provided that the protocols of the European Central Bank will hints at the postponement of interest rate hikes in the eurozone. In this case, the euro can significantly decrease, and the formation of a false breakout in the resistance area of 1.1573 will be an excellent signal for opening short positions with a return to the lows of 1.1523 and 1.1495, where I recommend taking profit. In the scenario of further growth in the trend, it is best to return to short positions on the rebound from 1.1605 and 1.1648.

Indicator signals:

Moving averages

Trading is conducted above the 30-day and 50-day moving averages, which indicates the resumption of the upward trend.

Bollinger Bands

Growth is limited by the upper line of the Bollinger Bands indicator, which is located in the area of 1.1605, from which you can open short positions immediately on the rebound. The downward trend will be restrained by the average border of the indicator around 1.1530.

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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
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