EUR/USD Signal Update
Yesterday’s signal was not triggered and expired. The price did reach the support level of 1.3648 but closed below it for three consecutive hours before rising slightly, giving no signal bar.
Today’s EUR/USD Signal
Risk 0.50%.
Entry should be made between 8am and 8pm 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 1.3583. The trade is invalidated once an hourly bar closes below this level.
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 1.3675.
Short Trade 1
Enter short with a stop sell order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3725. The trade is invalidated once an hourly bar closes above this level.
Stop loss at the local swing high.
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 1.3685.
EUR/USD Analysis
This pair fell then rose slightly, having a fairly quiet day. The support at 1.3648 was briefly broken for a few hours and the low of this weak support should now be seen as 1.3625. There is what should be stronger “flipped” support below at 1.3683, from where we can look for a long. Above us there is established resistance at 1.3725 which should be an appropriate place to look for a short.
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, however there is plenty of room for moderate downwards movement as well as upwards movement.
The support level identified at 1.3583 is very confluent with today’s GMT daily S3 pivot point, which should strengthen the level.
There is no important news due today during the London session for either the EUR or the USD, and therefore it is likely to be a relatively quiet session. However this evening will see the release of the FOMC statement which should see the market move.