EUR/USD Signal Update
Yesterday’s signals expired without being triggered as the price never hit either 1.3487 or 1.3687.
Today’s EUR/USD Signal
Risk 0.75%
Entry must be made before 5pm London time today.
Long Trade 1
Long entry following bullish price action on the H1 time frame after the first pull back to the broken bullish trend line currently sitting at about 1.3618.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 1.3640.
Take off 50% of the position as profit at 1.3640 and leave the remainder of the position to run.
Short Trade 1
Short entry following bearish price action on the H1 time frame after the first touch of 1.3687.
Put a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 1.3650.
Take off 50% of the position as profit at 1.3650 and leave the remainder of the position to run.
EUR/USD Analysis
I wrote yesterday that we would almost certainly get a breakout from the triangle and that it would probably be a bullish breakout, which turned out to be correct. The breakout was triggered by the much poorer than expected US GDP data, although this news does not seem to have depressed the USD as much as it might have.
We have local resistance flipping to support at 1.3625. This in itself looks too unreliable as a level at which to look for long trades, but as it is quite confluent with the broken bearish trend line from the triangle which the price has not pulled back to yet, a simultaneous rejection of both with bullish price action would look like a high-probability long trade
Above us there is a key resistance level at 1.3687 which can be shorted if confirmed with bearish price action.
There are no high-impact data releases scheduled for today that are expected to directly affect the EUR. Later at 1:30pm London time there will be a release of US Unemployment Claims data, which may affect the USD. It will probably be a quiet morning for this pair.