Relevance up to 05:00 2020-01-30 UTC–8
To open long positions on EURUSD, you need:
From a technical point of view, the market has not changed much, however, the bulls again have to actively defend the support level of 1.1000, which was formed yesterday. The lack of volume at each false breakout of this level does not inspire confidence in euro buyers. Therefore, do not forget about stop orders, since a breakout of 1.1000 will quickly push the pair lower to the lows of 1.0982 and 1.0964, from where I recommend opening long positions immediately for a rebound. The bulls will also rely on the current decision of the Federal Reserve System on interest rates, as well as on maintaining a softer approach of the Central Bank to the issue of monetary policy in the future, which may partially weaken the position of the US dollar and lead to the return of EUR/USD to the resistance area of 1.1030 where I recommend taking the profits. However, it will be possible to talk about further upward correction only after a breakthrough and consolidation above this range, which will open a direct path to the highs of 1.1060 and 1.1088.
To open short positions on EURUSD, you need:
Demand for the dollar as a safe-haven asset persists in the face of a difficult situation related to coronavirus infection in China, which may affect the global economy. In the short term, the bears today again coped with the morning task of updating the support of 1.1000, however, they still have not managed to break below this range, which indicates the wait-and-see position of the major players before today’s decision of the Federal Reserve on interest rates. The bears’ task, if the pair grows in the second half of the day, is to form a false breakout in the area of resistance 1.1030, which will be the first signal to open short positions. Fixing below the level of 1.1000 will push the pair to the lows of 1.0982 and 1.0964, where I recommend fixing the profit. In the scenario of EUR/USD growth above the resistance of 1.1030, it is best to postpone short positions until the highs of 1.1060 are updated or sell immediately for a rebound in the resistance area of 1.1088.
Trading is conducted below the 30 and 50 moving averages, which keeps the chance of a decline in the euro.
Breaking the lower border of the indicator around 1.0995 will lead to a decrease in the euro. Growth will be limited to the upper level of the indicator in the area of 1.1030.
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 – Moving Average Convergence / Divergence). 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,
InstaForex Group © 2007-2020
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