EUR/USD Signal Update
Last Thursday’s signal was not triggered as although the price did reach the 1.2440 during the London session, there was no bullish price action there.
Today’s EUR/USD Signals
Risk 0.75%
Trades may be taken only between 8am and 5pm London time.
Short Trade 1
Short entry following bearish price action on the H1 time frame immediately following the next touch of 1.2500.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 2
Short entry following bearish price action on the H1 time frame immediately following the next touch of 1.2539.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
EUR/USD Analysis
We are of course still in a long-term downtrend but what is most interesting is what happened last Friday. There was bullish USD news, which sent the USD to a fresh high which failed almost immediately. This meant that pairs such as EURUSD have seen a fairly strong pull back. We are now not far from the first logical resistance area at 1.2500 which is also a key psychological number. If we break 1.2500, the next test will be at around 1.2539 where there is also a strong flipping level. If we can break past 1.2539, then we can move up to 1.2600 and beyond. We are quite likely to see these levels respected today, but tomorrow and Wednesday will probably determine whether we will continue to pull back all week, or fall into the longer-term trend again.
There are no high-impact news releases scheduled today that are likely to affect either the EUR or the USD. It is likely to be a very quiet day.