EUR/USD Signal Update
Yesterday’s signals expired without being triggered as the price did not reach either 1.3487 or 1.3688.
Today’s EUR/USD Signals
Risk 0.75%
Entries must be made before 5pm London time today.
Long Trade 1
Go long after bullish price action on the H1 time frame following a first touch of 1.3487.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.3540.
Remove 75% of the position as profit at 1.3540 and leave the remainder of the position to ride.
Short Trade 1
Go short at a first touch of 1.3688.
Place a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.3610.
Take off 50% of the position as profit at 1.3610 and leave the remainder of the position to ride.
EUR/USD Analysis
As I suspected yesterday we did have a small move up. The daily high was made at around some support flipped to resistance at the 1.3586 level. Yesterday closed above the previous four days’ closes.
If we can break this level today, we might be able to get all the way up to the 1.3650 area. It is unlikely that we will reach 1.3688 but if we do it should make a great short touch trade.
The support level below at 1.3487 also looks good and is confluent almost exactly with today’s GMT S2 pivot point which should strengthen it. My colleague Christopher Lewis also sees this area as supportive.
The resistance at 1.3586 is too fresh to be traded today, but an eye should be kept on it as it might hold.
The forecast is for a move upwards in the short term, but within a longer-term bearish bias.
There is a release of the German ZEW Economic Sentiment data at 10am London time, which is likely to affect the EUR. Later at 1:30pm there will be a release of U.S. data: Building Permits and Core CPI, which may affect the USD. Today is likely to be more volatile than the any of the previous four trading days.