EUR/USD Signal Update
Yesterday’s signals expired without being triggered as neither of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1120.
* Place the stop loss 1 pip below the local swing low.
* 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 price reaches 20 pips in profit and leave the remainder of the position to run.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1234 or 1.1280.
* 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 price reaches 20 pips in profit and leave the remainder of the position to run.
EUR/USD Analysis
I had thought that yesterday would see an upwards move and so it proved to be. The price has risen again over the past few hours, and this kind of impulse emerging in the middle of the Asian session is unusual.
It looks as if we are going to see another upwards move today. All the action is bullish. The question is where might that move fall apart and one answer is the key resistance at 1.1234 which has proved to be very strong. If the price breaks above that it is a bullish sign for this pair that the short-term bullish trend will probably continue. There is also a chance of a double top forming a little lower, at about 1.1220 where the previous big swing high sits.
There is no long-term trend so always be prepared for choppy action here.
Concerning the EUR, there will be a release of German ZEW Economic Sentiment data at 10am London time. Regarding the USD, there will be releases of Building Permits and CPI numbers at 1:30pm.