EUR/USD Signal- Dec. 30, 2013
Today’s EUR/USD Signal
Entry should be made between 10am and 5pm London time today only.
Long Trade 1
Enter long at the next bar break of an hourly pin bar rejecting and closing above the support level of 1.3712. The pin bar must open and close within the top third of its range and should be larger than any of the previous 5 bars. If this level is not touched and rejected by the same hourly bar, or if an hourly bar closes more than a few pips below this level, the trade is immediately invalidated and should not be taken.
Stop loss 1 pip below the local swing low.
Take profit on 75% of the position at 1.3750 or more if that is needed to take the risk off the trade. Let the rest of the position ride.
The uptrend in this pair was quietly maintained over the Christmas period with bullish trend lines holding but minor resistance being established at 1.3712, before spiking upwards dramatically by about 200 pips on Friday. Although the price quickly retreated from this spike, I agree with Christopher Lewis’ belief that the line of least resistance is still currently upwards, so we should take a long bias.
There is important news today for the USD at 3pm (Pending Home Sales) London time which might move this pair.
I am prepared to look at a long trade confirmed by price action should we return to the previous resistance level of 1.3712 during the London session today, at least after 9am London time.
We are still in a bullish channel, as can be seen in the chart below:
- Currency Pairs