EUR/USD Signal Update
Yesterday’s signal was not triggered as the price has still not hit 1.3830.
Today’s EUR/USD Signal
Risk 0.50%.
Enter between 8am and 5pm London time.
Short Trade 1
Enter short at the first touch of 1.3830.
The stop loss should be placed at 1.3865.
Move the stop loss to break even when a profit of 25 pips has been reached. Take half of the position as profit at 1.3780.
EUR/USD Analysis
Yet again, the pair was extremely quiet; in fact the entire market has been extremely quiet with volatility shrinking everywhere. Recent daily average true ranges of this pair have fallen to approximately 50 pips, which is low.
Another ranging doji was printed on the daily chart. Yesterday’s candle was an inside candle but significantly also bullishly engulfed the real body of the previous candle. The last few days have all produced higher lows. Although the market seems very dead, such signs as there are, are bullish.
The H4 chart shows that at the time of writing, we are just about clinging to the bullish channel’s lower trend line, leaving the uptrend theoretically intact.
We have been stuck between local support at about 1.3690 and local resistance at 1.3770. The resistance seems a little more clearly defined, but it is important to note that we are still getting higher lows on the daily chart.
As yesterday was an inside day, it is quite likely that the first breakout will be a false one, but we must breakout to somewhere fairly soon. There is no strong support level I would like to rely upon before 1.3551, but we do have solid resistance overhead at 1.3830 that should be well placed to give a short touch trade from the current price if we manage to get there today.
There is no important EUR-related data scheduled for release today. For the USD, there is New Homes Sales data that will be released at 3pm London time today.