EUR/USD: plan for the European session on January 8. Demand for the euro slows down after good retail sales data

To open long positions on EURUSD you need:

The growth potential of the euro is gradually coming to an end and in order to maintain the upward movement, bulls need a breakthrough of resistance of 1.1465, which will open a direct road to the high of December last year in the area of 1.1497 and will lead to the renewal of the area of 1.1515, where I recommend taking profit. In the event of a decline in the euro in the first half of the day, the formation of a false breakout in the support area of 1.1435 will also be a signal to buy, otherwise it is best to open long positions in EUR/USD to rebound from 1.1407.

To open short positions on EURUSD you need:

Weak data on consumer confidence in the euro area could push the euro below the support level of 1.1435 or lead to the formation of a false breakdown in the resistance area of 1.1465, which will also be a signal to open short positions in order to further downward correction to the larger support area of 1.1407 and 1.1378, where I recommend take profits. In case of continued growth in the trend in the first half of the day above the resistance of 1.1465, it is best to open short positions to rebound from the high of 1.1497.

Indicator signals:

Moving averages

Trade has moved to the area of 30-day and 50-day moving averages, which indicates the end of the upward trend in the euro.

Bollinger bands

Growth is limited by the middle line of the Bollinger Bands indicator, which is located in the area of 1.1460. A break of the lower border of the indicator in the area of 1.1405 will lead to a larger sale of the euro.

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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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