To open long positions on EURUSD, you need:

According to the data on the German labor market, which was released in the first half of the day, there was an increase in the number of applications for benefits, as well as maintaining the level of lending to the eurozone unchanged, all these factors led to continued pressure on the European currency, which began the new year with a decline against the US dollar. Buyers failed to do anything at the level of 1.1145, the breakdown of which opened the possibility of updating the support of 1.1119, where I recommend opening long positions in the euro immediately on the rebound. An equally important task for the bulls will be to return to the area of 1.1145, above which we can expect a correction to the resistance area of 1.1174, from where the main sale of the euro took place today, and where I recommend fixing the profits. You can also count on the protocols of the Federal Reserve System, the publication of which can also lead to the restoration of EUR/USD.

To open short positions on EURUSD, you need:

The bears coped with the primary task of the morning, which I paid attention to in my review, and broke below the support of 1.1145. As long as trading is conducted under this range, the pressure on the euro will remain, and an unsuccessful consolidation at this level with the formation of a false breakout will be an additional signal to open short positions. This can be helped by weak inflation data in Germany, as well as a report on the US manufacturing ISM index. The immediate goal of sellers is the support of 1.1119, the breakout of which will collapse EUR/USD to a minimum of 1.1095, where I recommend fixing the profit. In the scenario of the bulls returning to the level of 1.1145, short positions can be returned immediately on the rebound from the morning high of 1.1174.

Indicator signals:

Moving Averages

Trading is below the 30 and 50 moving averages, which indicates that the pressure on the euro continues.

Bollinger Bands

The bears have already reached the lower limit of the indicator and broke it. In the case of a correction, the average border of the indicator around 1.1175 will act as an intermediate level of resistance.

Description of indicators

• Moving average (moving average determines the current trend by smoothing volatility and noise). Period 50. It is marked in yellow on the chart.
• Moving average (moving average determines the current trend by smoothing 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