23.01.201910:03 Forex Analysis & Reviews: EUR/USD: plan for the European session on January 23. There is no reference point for further movement

To open long positions on EURUSD you need:

Yesterday's weak data for the euro area led to selling the European currency, but a larger downward movement did not happen. At present, the first signal to buy EUR/USD will be a breakdown and consolidation above the resistance level of 1.1376, which will lead to a stronger upward correction in the region of the high of 1.1411 and 1.1451, where I recommend taking profits. The formation of a false breakdown in the support area of 1.1339 will also be the reason for buying the European currency. Otherwise, it is best to open long positions to rebound from this year's low around 1.1307.

To open short positions on EURUSD you need:

The release of fundamental statistics for the eurozone in the morning is not planned. Therefore, only the formation of a false breakdown in the support area of 1.1376 will be the first signal to open short positions with the main purpose of returning and consolidating below yesterday's low in the area of 1.1339, which will lead to a larger sale of EUR/USD with an exit to the level of 1.1307, where I recommend to fix the profit. In the case of the euro growth scenario, it is best to return to short positions to rebound from a high of 1.1411.

Indicator signals:

Moving averages

Trade is conducted in the area of 30-day and 50-day moving averages, which indicates the formation of the lateral nature of the market.

Bollinger bands

The volatility of the Bollinger Bands indicator is low, which does not give signals to enter the market.

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