EUR/USD Signal Update
Yesterday’s signals were not triggered.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1234 and 1.1220.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1338.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
EUR/USD Analysis
Following yesterday’s more dovish than expected commentary from the Federal Reserve, the Dollar fell quite strongly, and so this pair was no exception to the general rise. The chart below shows how the rise came after a trend line triple tap and then powered up past a double top, which should have formed a new zone of potential support beginning at 1.1234.
The price is currently close to the round number of 1.1300 and the next key resistance sits at 1.1337. This is a very key level, and if the price can break up above there and get established, we could start saying that this pair is in a truly strong upwards trend. However the level is likely to hold until Friday, so could provide a shorting opportunity if reached before then.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed later by Crude Oil Inventories at 3:30pm.