12.02.202007:03 Forex Analysis & Reviews: EUR/USD: plan for the European session on February 12. Bulls fought back, but there is no continuation. Aiming for 1.0922

To open long positions on EURUSD you need:

False breakout and growth from the level of 1.0905 is good news for euro buyers, but there is no continuation yet. Problems have already appeared around 1.0922, which is the first goal of buyers today. Only after its breakthrough and consolidation will it be possible to talk about the continuation of the upward correction to the area of highs 1.0950 and 1.0975, where I recommend taking profits. In case EUR/USD declines in the first half of the day, which is most likely to happen after the release of a bad report on industrial production in the eurozone, you can return to long positions on the support test of 1.0894, subject to a false breakout, or buy the euro to rebound from the lows 1.0869 and 1.0840. The market ignored the speech by European Central Bank President Christine Lagarde. If the bulls are active when they fall to the level of 1.0894 and do not allow them to reach it, then it will be possible to build the lower boundary of the new ascending channel, which in itself is a good signal for the euro tu strengthen further.

To open short positions on EURUSD you need:

Given that an upward correction is looming on the market, sellers will wait for the next weak data on the European economy, however it is best to open short positions only after a false breakout is formed in the resistance area of 1.0922. This will be a signal to sell the pound, and the main task of the bears will be the return of EUR/USD to the support area of 1.0894. Only its breakthrough will return a downward momentum to the market, which will open the way to lows in the areas of 1.0869 and 1.0840, where I recommend taking profits. In addition to important data on the volume of industrial production, there is no news today in the morning, so if there are no active sales on this report, it is best to postpone short positions until the resistance test of 1.0950 or even sell the euro for a rebound only from a high of 1.0975.

Signals of indicators:

Moving averages

Trade is conducted in the region of 30 and 50 moving average, which indicates the lateral nature of the market.

Bollinger bands

Volatility is low, which does not provide signals on entering the market.

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.