EUR/USD: plan for the US session on January 30. Buyers of the euro are waiting for the US GDP report and the breakthrough

By | January 30, 2020
InstaForex
EUR/USD: plan for the US session on January 30

Relevance up to 17:00 2020-01-30 UTC–8

To open long positions on EURUSD, you need:

The euro ignored a good report on the decline in the unemployment rate in the Eurozone and remained trading in a narrow side channel in pair with the US dollar before the key data on US GDP. From a technical point of view, nothing has changed compared to the morning review. At the moment, the bulls still have a task to overcome the resistance of 1.1030, and only this level depends on whether the pair will continue to grow further and whether the downward trend will be broken. A consolidation above 1.1030 will lead to an update of highs around 1.1060, but a larger bullish impulse is formed only if the data points to the weak growth of the US economy at the end of last year. If the pair declines again in the second half of the day, you can still return to long positions after forming a false breakout in the support area of 1.1000, but I recommend buying euros immediately for a rebound only after updating the lows of 1.0982 and 1.0964.

To open short positions on EURUSD, you need:

Euro sellers may have serious problems and their task for the second half of the day is to form a false breakout in the resistance area of 1.1030, which will be the first signal to open short positions. Good data on the growth of the US economy can also provide only temporary support to the US dollar, after which the major players will begin to take profits at the end of the month. Only a real breakout and consolidation below the range of 1.1000 will push the pair to the lows of 1.0982 and 1.0964, where I recommend fixing the profits. 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.

Indicator signals:

Moving Averages

Trading is conducted with just 30 and 50 moving averages, which keeps the chance of a euro recovery.

Bollinger Bands

Breaking the lower border of the indicator around 1.1005 will lead to a decrease in the euro. Growth will only occur after the upper level of the indicator breaks in the area of 1.1030.

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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 – 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,
Analytical expert
InstaForex Group © 2007-2020

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