05.02.202007:06 Forex Analysis & Reviews: EUR/USD: plan for the European session on February 5. The bears pushed the euro to the support of 1.1020. Buyers will expect a good report on the services sector of the eurozone countries

To open long positions on EURUSD, you need:

Yesterday's data on inflation in the eurozone did not make euro buyers very happy, which was not true of the report on orders in the US manufacturing sector, which supported the dollar in the second half of the day. Now the situation with the levels has changed slightly and buyers may have problems overcoming the resistance of 1.1046. Only the growth of the services sector in the eurozone will return the demand for EUR/USD and help to break above 1.1046, which will strengthen the demand for the euro and lead to an update of the highs of 1.1067 and 1.1095, where I recommend fixing the profits. If the data turns out to be worse than economists' forecasts, then most likely the pair will return to the support area of 1.1019, from where I recommend opening long positions only if a false breakout is formed. You can buy EUR/USD immediately on a rebound from the minimum of 1.1993. A breakdown of the support of 1.1019 will also indicate a reversal of the current upward trend that was formed at the end of January this year.

To open short positions on EURUSD, you need:

Bears still control the market, but it is too early to talk about a reversal of the upward trend. Only a weak report on the services sector will return EUR/USD to the support area of 1.1019, but a more important task for sellers will be to consolidate under this level, which will strengthen the downward trend and lead to an update of the lows in the area of 1.1993, from where the bullish growth began last week. An unsuccessful attempt to return and consolidate above the resistance of 1.1046 in the first half of the day will also be an additional signal to open short positions in the euro, but I recommend selling immediately for a rebound only from the maximum of 1.1067. We must also remember today's speech by the President of the European Central Bank, Christine Lagarde, who may hint at an increase in economic stimulus measures at the beginning of this year, which will also weaken the position of the European currency in the short term.

Signals of indicators:

Moving averages

Trading is conducted just below the 30 and 50 moving averages, which indicates the predominance of sellers in the market.

Bollinger Bands

A break of the lower border of the indicator around 1.1030 will be an additional signal to open short positions in the euro. Growth will be limited to the upper level in the area of 1.1055, a breakout of which will lead to new purchases of the euro.

Description of indicators

• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 50. It is marked in yellow on the chart.
• Moving average (moving average determines the current trend by smoothing out volatility and noise). Period 30. It is marked in green on the chart.
• MACD indicator (Moving Average Convergence/Divergence - convergence/divergence of moving averages) Fast EMA Period 12. Slow EMA Period 26. SMA Period 9
• Bollinger Bands (Bollinger Bands). Period 20