EUR/USD Signal Update
Yesterday’s signals did give a short signal off the resistance zone from 1.1262, which produced a small profit at 20 pips before reversing with strong momentum and stopping out the remainder of the trade at break even.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the supportive zone between 1.1288 and 1.1262.
Place 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 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal following a first touch of 1.1450.
Place 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 ride.
EUR/USD Analysis
Yesterday was a very crucial day for this pair, as it managed to break past the zone from where the final drive down to the 1.05 level originally began. These broken zones of consolidation tend to be very powerful when they are reached again, and it had held the price recently as resistance, but it only forced a short pull back here early in the London session before the Euro came roaring back and broke cleanly above this zone. We can now expect this zone to have been flipped to strong support so we can look for long entries upon any pull back to that area.
The upwards momentum has been almost as stunning as the drop was earlier this year. The price has risen approximately 900 pips in less than 1 month. Under these conditions, short trades must be approached very carefully.
The next key resistance level is at 1.1450.
There will be a release of U.S. Unemployment Claims data at 1:30pm London time.