EUR/USD Signal Update
Yesterday’s signals gave a short trade after there was bearish price action following the first touch of 1.2564 with a bearish engulfing candle on the H1 chart. This did reach 20 pips of profit at which half of the position should have been cashed out and the stop moved to break even, so there was a small win here. However the price then returned to the entry level, stopping out the rest of the trade at break even.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm London time.
Short Trade 1
Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.2564.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 1
Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.2361.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 2
Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.2342.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
EUR/USD Analysis
There was a breakout yesterday as expected, with the price first breaching 1.2500 and then shooting all the way up to 1.2564, which acted as good resistance, providing a short trade.
The price has been falling steadily throughout the Asian session, suggesting that we are going to see a further move down today towards local support at around 1.2415 and possibly even below that. The volatility yesterday was a little wild and so it was hard to take advantage of support and resistance.
It is quite possible that the market will be fairly quiet today in advance of the FOMC statement tonight.
It is quite likely that we have already made the high for the week and there is still USD bullishness to play out. This is the view of my colleague Christopher Lewis, who sees this pair returning to 1.2250.
There are high-impact data releases scheduled today directly concerning the USD but nothing regarding the EUR. At 1:30pm London time there will be a release of CPI data followed later at 7pm by the FOMC Statement and Projections and announcement of the Federal Funds rate. The FOMC even is likely to be crucial to the next important directional development of this pair.