03.02.202011:41 Forex Analysis & Reviews: EUR / USD: plan for the European session on February 3. Bullish momentum in euro must be confirmed with support test 1.1058

To open long positions on EURUSD, you need:

Friday growth led to a rush of important resistance levels, which now act as support. Today, buyers of the euro need to confirm the area of 1.1058, where a surge in volume on the test and the formation of a false breakdown will be signals to open long positions. A breakthrough and consolidation above the resistance of 1.1085 will also be an equally important task, which will lead to the renewal of the highs of 1.1112 and 1.1131, where I recommend taking profits. However, the bulls are faced with a report on the index of activity in the manufacturing sector, which may violate all plans. In case of a decline scenario under the support level of 1.1058, I recommend returning to long positions only on a rebound from a minimum of 1.1035.

To open short positions on EURUSD, you need:

Bears will be waiting for a report on the index of activity in the manufacturing sector of the eurozone and the United States. Bad data may lead to an update on the support level of 1.1058, the protection of which will become a priority for buyers of the euro. If sellers manage to gain a foothold even below this level in the morning, then you can count on an instant return of EUR / USD to the support area of 1.1035, where I recommend taking profits. No less important will be the protection of resistance 1.1085, to which the bulls will try to return the pair today after poor data on a similar ISM index in the USA. The formation of a false breakdown will be a signal to open short positions. Otherwise, I recommend selling immediately on the rebound from a maximum of 1.1112.

Indicator Signals:

Moving averages

Trade is conducted in the region of 30 and 50 moving average, the test of which can lead to a return of demand for the European currency.

Bollinger bands

Testing the lower border of the indicator in the region of 1.1058 will be an additional signal to open long positions in euros. Growth will be limited by the upper level in the area of 1.1097.

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