EUR/USD: consolidation at local highs 11 February 2021, 09:07

 

EUR/USD: consolidation at local highs

11 February 2021, 09:07

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.2155
Take Profit	1.2234
Stop Loss	1.2110
Key Levels	1.1951, 1.2000, 1.2052, 1.2087, 1.2150, 1.2200, 1.2234, 1.2271

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.2085
Take Profit	1.2000
Stop Loss	1.2130
Key Levels	1.1951, 1.2000, 1.2052, 1.2087, 1.2150, 1.2200, 1.2234, 1.2271

Current trend

EUR shows the flat dynamics of trading against USD during today's morning session, consolidating after another renewal of local highs the day before. The reason for the emergence of multidirectional dynamics was the correctional sentiment for USD, which received support after the disclosure of some details of the previously announced plan to stimulate the US economy in the amount of USD 1.9 trillion. At the same time, published macroeconomic statistics from the USA often exert moderate pressure on USD positions, as, for example, in the case of data on consumer inflation, which appeared on Wednesday.

In turn, the macroeconomic statistics from Europe, published on Wednesday, turned out to be neutral. The Consumer Price Index in Germany in January rose by 0.8% MoM and 1% YoY, which coincided with market expectations and data for the previous period.

Support and resistance

In the D1 chart, Bollinger Bands are reversing horizontally. The price range is slightly changing, being spacious enough for the current activity level in the market. MACD indicator is growing preserving a stable buy signal (located above the signal line). The indicator is about to test the zero line for a breakout. Stochastic retains upward direction but is located near its highs, which indicates the risks of overbought EUR in the ultra-short term.

Existing long positions should be kept in the short and/or ultra-short term until the signals from technical indicators clear up.

Resistance levels: 1.2150, 1.2200, 1.2234, 1.2271.

Support levels: 1.2087, 1.2052, 1.2000, 1.1951.

Trading tips

To open long positions, one can rely on the breakout of 1.2150. Take-profit – 1.2234. Stop-loss – 1.2110. Implementation time: 2-3 days.

The return of "bearish" trend with the breakdown of 1.2087 may become a signal for new sales with the target at 1.2000. Stop-loss – 1.2130.