EUR/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s EUR/USD Signals
Risk 0.75%
Entry before 5pm London time only.
Long Trade 1
Go long after confirming H1 price action following the first touch of 1.3750.
Put a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the trade is in profit by 20 pips.
Take half the trade as profit at 1.3820 and leave the remainder of the position to run.
Short Trade 1
Go short after confirming H1 price action following the first touch of 1.3878
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the trade is in profit by 20 pips.
Take half the trade as profit at 1.3820 and leave the remainder of the position to run.
EUR/USD Analysis
Yesterday saw a further extension of this week’s strongly bullish move up off the touch of the long-term bullish trend line last Friday. There was buying pressure even before the FOMC minutes release yesterday evening, after which the price shot up to 1.3850 and at one point was just short of 1.3870 overnight before falling off very early this morning.
We have broken up through a multi-year, long-term bearish trend line, which is a very bullish sign. Every indication is bullish, including candlestick analysis of the higher time frames. The USD is suffering from weakness across the board.
It has been very rare recently to see this pair rise almost 300 pips over 4 consecutive days, so some kind of pull back as a pause in the trend at least is fairly likely today. Nevertheless, that is not a supposition I would trade on. However there is resistance not far above us at 1.3878 where I would be prepared to look for a short trade if it confirmed by bearish price action.
As for options to trade with the trend, long entries become possible upon pull backs to key levels. This pair loves to resume after a good pull back. A retest of the broken trend line at around 1.3800 is a possibility, but I prefer to wait for the 1.3750 level to be reached. It is confluent today with a supportive GMT pivot point and is a key psychological level.
There are no high-impact news releases due today concerning the EUR, At 1:30pm London time there is the release of US Unemployment Claims data.