EUR/USD Forex Signal - 13 January 2015
EUR/USD Signal Update
Yesterday’s signal was not triggered as the price never reached 1.1893.
Today’s EUR/USD Signals
Short Trade 1
Go short after bearish price action on the H1 time frame immediately following the next touch of 1.1893.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
As expected, yesterday was a fairly quiet day for this pair, and today will probably be the same. The price tumbled to hit a level close to local support at 1.1780, before rising relatively sharply to end up more or less back where it started this week. This shows we have had a certain degree of buying with higher lows, giving credence to the case that it is time for a bullish pull back. However, I am reluctant to look for a long in such a strong bearish trend and at such a low price, even though the overall odds in the event of a trend reversal could make this, statistically, a good trade.
The likely resistance I had identified overhead at 1.1893 has not yet been reached, and if this level is hit today and then followed by bearish price action, I would look for a short there and a resumption of the downwards trend.
There might well be support close to 1.1750 but I would not look for a long trade there.
There are no high-impact data releases scheduled today concerning either the EUR or the USD. It is likely to be a relatively quiet day today for this currency pair.
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