EUR/USD Signal Update
Yesterday’s signals may have produced a short trade off the first pin candle rejecting the identified resistance level at 1.1234 yesterday, which would have been a losing trade.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1234 and 1.1200.
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.
Remove 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 1.1318.
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.
Remove 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
There were no big surprises in yesterday’s FOMC release, but the USD had begun to weaken before the release in any case, and this has continued subsequently in line with the wider long-term global trend. Although the Euro has been dragged down by fears that the U.K. will vote to leave the E.U. next week, the Euro found some support yesterday at 1.1200 and even managed to break up above the resistance at 1.1234, now threatening the next resistance level at 1.1278. This may hold but it looks as if it is the next level at 1.1317 which is going to be really key.
We can expect 1.1234 to have now flipped to become support.
There is nothing due today concerning the EUR. Regarding the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time.