To open long positions on EUR / USD pair, you need:
Trade remained in a narrow side channel, after the report on inflation in Germany, which coincided with the forecasts of economists. Moreover, t is rather difficult to determine the future direction of the euro. You can take a closer look at the euro when forming a false breakout at the level of 1.1375 with confirmation of divergence on the MACD indicator or open long positions to rebound from support 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 maximum of 1.1481, where I recommend taking profits. The Weak US data may help bulls with correction.
To open short positions on EUR / USD pair, you need:
Sellers have shown themselves, not allowing the pair to get above the resistance of 1.1430, to which I paid attention in my morning review. In this scenario, the pressure on the euro will remain but the main task will be a breakthrough of support for 1.1375, which will lead to a larger sale of EUR/USD with access to 1.1343 and 1.1312 lows, where I recommend taking profits. If after testing the minimum of 1.1375 and 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
Trade is conducted below the 30- and 50-moving averages, which indicates that the downward trend in the market continues.
Bollinger bands
Growth is limited by the upper limit of the Bollinger Bands indicator in the area of 1.1430, while the lower limit in the area of 1.1380 can support European currency buyers.
More in the video forecast for January 16
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