EUR/USD: plan for the European session on January 18. There is no clear reference point for the EUR/USD pair

To open long positions on EURUSD you need:

The euro fell yesterday against the background of weak data for the euro area and a good report on the US labor market. Today, you can take a closer look at purchases when forming a false breakdown at the level of 1.1375, however, it should be taken into account that this will be the fourth test of this range, which may lead to its breakdown. In this scenario, it is best to open long positions to rebound from support of 1.1343. The main task of buyers is to return to the resistance level of 1.1411, which will lead to a larger upward correction to the high of 1.1451 and 1.1490, where I recommend taking profits.

To open short positions on EURUSD you need:

Sellers will emerge after the formation of a false breakdown at the resistance level of 1.1411, 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 the EURUSD with access to the lows of 1.1343 and 1.1312, where I recommend to fix the profit. If rapid downward movement is not formed after a test of the low of 1.1375, I recommend closing short positions, since a large upward correction in euro can be formed from this level. Weak data on the eurozone in the first half of the day may help the bears to break below support of 1.1375.

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

Bolling Bollinger Bands is very low, which does not give signals to enter the market.

kNWx206XmbItbmtVxkliMibMhn_XgW1yuDzwcktS

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
The material has been provided by InstaForex Company - www.instaforex.com