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EUR / USD pair: plan for the European session on February 5. Further decline of the euro is questionable

To open long positions on EUR / USD pair, you need:

Although the euro is declining, the bearish momentum is very weak. In the first half of the day, buyers need to return to the resistance level of 1.1448, only above of which the demand for EUR / USD will increase. Then, this will lead to an update of the maximum of 1.1487, where I recommend taking profits. In the case of another weak statistics for the euro area, it is best to consider long positions on the decline at the major support of 1.1408 or to rebound from a minimum of 1.1378.

To open short positions on EUR / USD pair, you need:

Sellers will try to form a false breakdown today at the level of 1.1448, just above which the 50-day moving average passes. This will be the first signal to sell the euro with the main goal of breaking through and fixing below support for 1.1408, which will lead to a large sale of EUR / USD to a minimum of 1.1378, where I recommend taking profits. If the euro rises in the first half of the day above the resistance of 1.1448, you can immediately return to sales to rebound from the maximum of 1.1487.

Found in the video review.

Indicator signals:

Moving averages

Trading has moved under the 30- and 50-day moving averages, and a correction to them will be a good signal for opening short positions.

Bollinger bands

In the case of an upward correction, the upper limit of the Bollinger Bands indicator around 1.1448 will be a good level for opening short positions in the euro.

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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