EUR/USD Signal Update
Yesterday’s signal was not triggered and expired. The price first made a daily high right at the pip of the start of the resistance zone I had identified at 1.3715, before making the day’s low just 4 pips above the signal’s support level at 1.3652.
Today’s EUR/USD Signal
Risk 0.50%.
Entry should be made between 8am and 5pm London time today only.
Long Trade 1
Enter long with a stop buy order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3648. The pin bar should be the largest of the previous 5 bars and the engulfing bar should have a real body of at least 15 pips.
Stop loss at the local swing low.
Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 75% of the position as profit at 1.3700 and move the stop to break even.
EUR/USD Analysis
This pair rose initially to resistance before falling to support, but the action was relatively weak overall. It was a typical Monday with a daily range of only 65 pips.
There has been no change to the wider technical picture. We are still established in a wider bullish channel that has been running since last summer.
The support level identified at 1.3648 is very confluent with today’s GMT daily S1 pivot point, which should strengthen the level.
I think the line of least resistance is upwards and believe the failure to rise over the last two days that can be seen from the pin-type bars on the daily chart is just because we have not picked up enough demand yet.
There is no important news due today for the EUR. For the USD, there is Core Durable Goods Orders at 1:30pm London time followed by CB Consumer Confidence at 3pm.