EUR/USD Signal Update
Yesterday’s signals were not triggered as we did not get any bearish price action when the price reached the key level of 1.1459.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be entered between 8am and 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1500 and 1.1525.
- Place the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 30 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.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1700 and 1.1725.
- 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.
- 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.
EUR/USD Analysis
Yesterday was an absolutely wild market, with the price moving about 200 pips within the space of ten minutes at around the time New York opened. When there is a situation of global market panic and absolutely massive price movements, technical analysis has to go out the window. A trader can either try to react very fast and make a killing, or step back and sit the wild swings out.
Money has been flowing into the EUR, my recent bullish bias after the consolidating triangle broke has certainly served to point the way to the right direction in which to be positioned.
The day saw a range of just under 400 pips which is huge. One of the problems with such large movements is that it blows away a lot of key support and resistance and leaves a huge gap where it becomes very hard to judge where support and resistance will be. Nevertheless I see support just above and at the psychologically key 1.1500 level, and logically, there will be resistance at the top of yesterday’s range starting close to the round number of 1.1700.
Concerning the EUR, there will be German IFO Business Climate numbers at 9am London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm.