EUR/USD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.0418.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 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 1.0418.
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 run.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0479 or 1.0520.
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 run.
EUR/USD Analysis
When markets come back from holiday there are often sharp movements and yesterday was no exception. The movement was not huge but what was unusual was its sharpness in both directions. Initially the price hit the resistance at 1.0479 and plummeted, before reversing sharply during the New York session and now getting to the point it was at 24 hours ago.
Zooming out, we have the final leg of a bullish Quasimodo pattern forming new support at 1.0372 – this is the technical justification for yesterday’s move up.
This also brings the former support at 1.0417 back into play.
The next clue will come from whether the resistance at 1.0479 is challenged successfully, or holds.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories data at 4pm.