EUR/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be entered before 5pm London time today only.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line currently sitting at around 1.1175.
- Put 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.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the trend line currently sitting just above 1.0885.
- Put the stop loss 1 pip below the local swing low.
- Adjust 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 run.
EUR/USD Analysis
The Euro is looking weak as the world now worries about the sustainability of the Greek deal. Combined with the relative slight strength in the USD and the hope among dollar bulls that it will soon take off as a U.S. rate hike approaches, and a fall in value looks likely to be forthcoming. It is significant that we have broken below the 1.1000 level and the price seems fairly comfortable below there. However we are still trapped within a defined channel that is at risk of becoming a consolidating triangle, as support is not collapsing.
The next thing to watch for is whether the upward-sloping trend line holds well if it is hit. This is not established yet, so it would be a bullish sign confirming the existence of a bullish trend line. Below that, there is another trend line that is more likely to be supportive and it might provide a good long opportunity. If the price breaks below that trend line, it would be a very bearish sign.
Regarding the EUR, there will be a release of German ZEW Economic Sentiment data at 10am London time. Concerning the USD, there will be a release of Retail Sales data at 1:30pm.