EUR/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s EUR/USD Signal
Entries should be made only between 9am and 5pm London time today.
Enter at the first to occur only after a next bar long break of a confirming pin bar, engulfing bar or strong outside bar as follows:
Long Trade 1
Enter long after confirmation bar touching support level at 1.3490, ideally confluent with lower channel trend line and 50% Fibonacci retracement level nearby. If the lower wick of the confirmation bar touches the S2 pivot at 1.3471, this would be excellent.
Stop loss at the lower of local swing low or 1.3465.
Move stop loss to break even at 1.3555.
Long Trade 2
This trade to be taken only if price falls through the support level at 1.3490 without any pull back.
Enter long with a limit order at a touch of 1.3405.
Stop loss at the lower of local swing low or 1.3368.
Move stop loss to break even and take profit on half of the position at 1.3475.
In yesterday’s analysis I stated that “the pair is now struggling to make new highs and broke an inner trend line on Friday, so appears well-positioned for a short.” Unfortunately our upper trend line where the short signal was positioned was not retested, so no entry signal was triggered, but we were correct on the daily direction. As can be seen from the chart above, the price fell sharply yesterday to 1.3525, from which it has pulled back fairly strongly in the late Asian session so far.
A closer look at the chart above shows that the 1.3558 level, which acted as both resistance then support last week, was tested again yesterday from below and held as resistance. It is too early to say if this level has been re-established, but it coincides exactly with today’s GMY central pivot point, so the level should be noticed. It is used as an initial target for our long signal today, but we are not using it as an entry for a short signal.
There is resistance overhead at around 1.3620 – 50; this area just saw a distributive topping out.
Spanish unemployment statistics are being released at 8am London time today so the price may swing sharply around that time.