EUR/USD: plan for the US session on February 20. The euro continues to stagnate around annual lows. The sellers’ target remains

By | February 20, 2020
InstaForex
EUR/USD: plan for the US session on February 20. The euro continues to stagnate around annual lows

Relevance up to 18:00 2020-02-20 UTC–8

To open long positions on EURUSD, you need:

Data on German producer prices helped keep the euro at this year’s lows, forming a false breakdown from the support area of 1.0785, which also led to the formation of a divergence on the MACD indicator. This is a bullish signal, however, given the current position of the European currency, it is not necessary to count on strong upward momentum. In the scenario of a breakthrough and a decline below the level of 1.0785 in the afternoon, it is best to return to long positions after the area of 1.0765 is updated or immediately to a rebound from the larger low of 1.0740. An equally important task for the bulls will be to break through and consolidate above the resistance of 1.0825, from which a good upward correction will be formed in the area of the highs of 1.0860 and 1.0886, where I recommend taking the profits.

To open short positions on EURUSD, you need:

The bears continue to bend their line, however, they have not managed to break below the support of 1.0785 for the third day in a row, which may lead to a sharp rebound of the pair up. Apparently, the sellers are counting on good reports on the US economy, which are scheduled for the second half of the day, since only a break in the support of 1.0785 will drop EUR/USD in the area of the lows of 1.0765 and 1.0740, where I recommend fixing the profits. In the scenario of the pair’s growth in the second half of the day, only the formation of a false breakdown in the area of 1.0825 will signal the opening of short positions in the euro. I recommend selling immediately for a rebound only after testing the maximum of 1.0860.

Signals of indicators:

Moving averages

Trading is conducted in the area of 30 and 50 moving averages, which indicates market uncertainty in the short term.

Bollinger Bands

Volatility remains at a low level, which plays on the side of sellers of the European currency.

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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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