By IFCMarkets
Improving German economic expectations bullish for EURUSD
On 1-hour timeframe EURUSD: H1 is rising toward the 200-period moving average MA(200) which is falling itself. The RSI indicator has formed a bullish divergence.
We believe the bullish momentum will resume after the price breaches above the upper boundary of Donchian channel at 1.1094. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.1084. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
German economic expectations improved strongly in January and reached their highest level since 2015. Will the EURUSD start rising?
| Indicator | VALUE | Signal |
| RSI | Buy | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| Fractals | Neutral | |
| MA(200) | Sell |
Summary of technical analysis
| Order | Buy |
| Buy stop | > 1.1094 |
| Stop loss | < 1.1084 |
Market Analysis provided by IFCMarkets
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