EUR/USD Signal Update
Last Thursday’s signals were not triggered.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be taken before 5pm London time today only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1200.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1258, 1.1288 or 1.1318.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
EUR/USD Analysis
I wrote last Thursday that “this area above 1.1400 has been a key limit on the price of this pair over the past 18 months. Therefore it is a very pivotal zone. It might again cap the price and produce a move down of several hundred pips.”
Of course, there was (and still is) also a case that a bullish breakout up above 1.1400 could be strong as this cap has been in place for a long time and has also been tested (unsuccessfully) several times.
In any case, it is the move down we have got. This was helped as the USD finally began to show some strength towards the end of last week, but the USD is quite mixed at the moment so any movement now is probably driven more by the Euro. This makes sense as a British vote to leave the European Union begins to look more probable, which would be a heavy blow to the European Union.
As things stand now the price had a small bounce off a support level below, so I would be looking for a bounce below that at 1.1200 before initiating any new longs.
There are several resistance levels close by that could be good for new shorts.
Overall this pair is likely to be fairly flat and choppy until the FOMC release on Wednesday.
There is nothing due today concerning either the EUR or the USD.