EUR/USD Signal Update
There are no outstanding signals.
Today’s EUR/USD Signals
Risk 0.75%
Entries can only be made between 8am and 5pm London time today.
Long Trade 1
Long entry at the first touch of 1.3487.
Put a stop loss at 1.3454.
Adjust the stop loss to break even when the price reaches 1.3520.
Take off 50% of the position as profit at 1.3520 and leave the remainder of the position to run.
Short Trade 1
Short entry at the first touch of 1.3687.
Put a stop loss at 1.3717.
Adjust the stop loss to break even when the price reaches 1.3663.
Take off 50% of the position as profit at 1.3663 and leave the remainder of the position to run.
EUR/USD Analysis
As expected, yesterday was a quiet day before the FOMC, and even afterwards this pair remained quiet as the FOMC in general did not make a big impact on the Forex market. It should be remembered too that of all the major currencies, the EUR and USD have been the most stable over the past year.
Before the FOMC, the R1 pivot just below 1.3586 did hold as I had forecast, and there was a good short scalping opportunity there from a bearish inside bar on the M5 chart. I hope any scalpers out there took it, although I do not recommend scalping!
Looking forward now, at the time of writing it seems that we might be topping out in an area that acted as resistance yesterday, so we might move down over the next hour or so at least. Beyond that, we are about 90 pips in either direction from the nearest support and resistance levels, so I am prepared to look at touch trades for either. If I have to guess which one we are going to hit first, the daily chart price action suggests some bullishness so I would pick 1.3688. Before we can get there we will have to cross a fairly short-term bearish trend line as shown in the chart below. I do not expect this trend line to have a lot of strength but it is something to watch out for.
There are no high-impact news releases due today concerning the EUR. At 1:30pm London time US Unemployment Claims numbers will be released, followed by the Philly Fed Manufacturing Index at 3pm. This means that it is quite likely to be a quiet early London session, but things should get more active during the early New York session today.