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Trading Signals for EUR/USD for January 30-31: buy above 1.1940 (21 SMA - 6/8 Murray)

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Trading Signals for EUR/USD for January 30-31: buy above 1.1940 (21 SMA - 6/8 Murray) - ExpertFX School

EUR/USD is trading at 1.1949 within the trend channel formed since January 9 and consolidating within this channel, awaiting a technical rebound during which the instrument could reach the 7/8 Murray around 1.2085.

If the euro consolidates above the 6/8 Murray located at 1.1962, this could be seen as a positive sign, and we could expect EUR/USD to reach 1.2085 or even the top of the uptrend channel around 1.2170.

Conversely, a sharp break of the uptrend channel and consolidation below 1.1890 could be a critical scenario for the euro. Below this level, EUR/USD could reach the 4/8 Murray around 1.1718 and finally the 3/8 Murray at 1.1596.

Given that the euro is overbought, we could look for an opportunity to open long positions only if EUR/USD consolidates above the 21 SMA and above the 6/8 Murray.

Since the Eagle indicator is showing a negative signal, we could perhaps expect a technical rebound towards the resistance zone of 1.2000 or 1.2025. Then, both levels could be a point to enter short positions.

The material has been provided by InstaForex Company - www.instaforex.com
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