EUR/USD: plan for the US session on February 11. The bears are trying to break the level of 1.0905

By | February 11, 2020
InstaForex
EUR/USD: plan for the US session on February 11. The bears are trying to break the level of 1

Relevance up to 18:00 2020-02-11 UTC–8

To open long positions on EURUSD, you need:

From a technical point of view, nothing changed in the first half of the day, except for the bears’ attempt to break the support level of 1.0907, which I paid attention to in my morning forecast. The task of buyers is to form a false breakdown in the area of 1.0907, which will be a signal to open long positions. However, the more important goal is to break through and consolidate above the resistance of 1.0975. Only such a scenario will allow you to see a new major upward correction in the area of the highs of 1.1002 and 1.1022, where I recommend fixing the profits. If we gain a foothold in the second half of the day below the level of 1.0907, in this case, it is best to postpone new long positions until the test of the larger lows of 1.0878 and 1.0840. Given the speeches of the heads of central banks, including Fed Chairman Jerome Powell, the dollar may receive significant support. However, you should also pay attention to the divergence that is formed on the MACD indicator, which can lead to the end of the downward trend in the short term, allowing EUR/USD to form an upward correction.

To open short positions on EURUSD, you need:

Bears are trying to break below the support of 1.0907, however, the volume that is marked when this level is broken indicates more about the closing of short positions by large players than about the recruitment of new ones. Be very careful with sales below 1.0907, especially after the speech of the head of the Fed, Jerome Powell, as any return to this level can lead to a sharp upward correction. If the pressure on the euro continues in the second half of the day, the nearest target for sellers will be the minimum of 1.0878, as well as the support area of 1.0840, where I recommend fixing the profits. If EUR/USD rises above 1.0907 in the second half of the day, it is best to look at short positions after updating the maximum of 1.0936, on a false breakdown or sell the euro immediately on a rebound from the maximum of 1.0975.

Signals of indicators:

Moving averages

Trading is conducted below the 30 and 50 moving averages, which indicates a predominance of sellers.

Bollinger Bands

Volatility has decreased, which does not give signals to enter the market.

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Description of indicators

  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. The graph is marked in yellow.
  • Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. The graph is marked in green.
  • MACD indicator (Moving Average Convergence / Divergence – Convergence / Divergence Moving Average) Fast EMA Period 12. Slow EMA Period 26. SMA Period 9
  • Bollinger Bands (Bollinger Bands). Period 20

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Ruben Watson,
Analytical expert
InstaForex Group © 2007-2020

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