EUR/USD: plan for the European session on January 16. The downward movement in the euro may slow down

To open long positions on EURUSD you need:

The euro fell yesterday against the backdrop of statements by European Central Bank President Mario Draghi about the need to further stimulate the eurozone economy. Today, it is possible to take a closer look at euro purchases when a false breakout is formed at the level of 1.1375 with confirmation of divergence on the MACD indicator, or to open long positions to rebound from support of 1.1343. The main task of buyers is to return to the resistance level of 1.1430, which will lead to a larger upward correction to a high of 1.1481, where I recommend taking profits. Weak US data may help bulls with a correction.

To open short positions on EURUSD you need:

Sellers will emerge after the formation of a false breakdown at the resistance level of 1.1430, which will increase the pressure on the euro, but the main task will be a breakthrough of support for 1.1375, which will lead to a larger sale of EURUSD with an exit to the lows of 1.1343 and 1.1312, where I recommend to fix the profit. If after a test of a low of 1.1375 rapid downward movement is not formed, I recommend closing short positions, since a large upward correction in euro can be formed from this level.

Indicator signals:

Moving averages

Trading remains below the 30-day and 50-day moving averages, which indicates the bearish nature of the market.

Bollinger bands

In the event of a decline in the euro, the lower limit of the Bollinger Bands indicator in the 1.1375 area will provide support. Short positions can be immediately looked at a rebound from the upper border of the indicator in the area of 1.1450.

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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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