EUR/USD Signal Update
Last Thursday’s signals expired without being triggered.
Today’s EUR/USD Signals
Entries may be made only between 8am and 5pm London time today.
Long Trade 1
Enter long following confirming bullish price action upon the first touch of 1.3751.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 1.3795.
Take off 50% of the position as profit at 1.3795 and the remainder of the position at 1.3845.
Short Trade 1
Enter short with a sell limit order at the first touch of 1.3861.
Put a stop loss at 1.3909.
Move the stop loss to break even at 1.3831 and take 40% of the position as profit.
Exit the remainder of the position at 1.3751.
I was correct last Thursday stating that the price should remain stuck between 1.3949 and 1.3751 until today, but I was wrong in holding a slightly bullish bias in the meantime. The price has in fact fallen slightly but as expected things were very quiet over the Easter holiday that has just ended.
A candlestick analysis of the higher time frames shows a mixed picture: the monthly slightly bearish, the weekly is slightly bullish, and the daily bearish. Despite that the bullish trend line below us is still holding and is currently coming into confluence with the support level at 1.3751. A sustained break below here would look bearish.
The only real new development worth noting is that the gap from over a week ago still remains unfilled and in fact acted as resistance at 1.3861, and this level had previously acted as support. This flip to resistance is a bearish sign, but I see no reason why we should not hit 1.3861 before 1.3751 next.
It is a mixed picture and the best thing to do today seems to be to look for both long and short trades without being too greedy on the take profit levels.
There are no high-impact news releases due today concerning the EUR. At 3pm London time there is a release of US Existing Homes Sales data. It is likely to be a fairly quiet day.