EUR/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s EUR/USD Signals
Risk 0.50%.
Entry should be made before 5pm London time today only.
Long Trade 1
Enter long with a limit buy order at the first touch of 1.3551.
Stop loss at 25 pips.
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 1.3620.
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 1.3738. 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 50% of the position as profit at 1.3655.
EUR/USD Analysis
Due to the absence of news yesterday and the public holiday in the U.S.A., there has been very little change in the situation. Yesterday’s daily range was less than 40 pips.
The end of last week saw a bullish move up with a breakout from the bearish channel that we had been established in for some time. We are also within a longer-term uptrend.
The daily candles were however quite weak on the upside, which suggests that we are not going to have much further to move up before we will pull back down some way.
A likely candidate as a good resistance level is 1.3738. This level was more or less the January high and a sharp peak. It is also exactly confluent with today’s R2 GMT daily pivot point.
I agree with Christopher Lewis’s assessment that this pair simply has no real clear directional impetus at the moment.
There is no important news due today for USD. Concerning the EUR, at 10am London time the German ZEW Economic Sentiment data will be released, which usually causes some activity.