EUR/USD Signal Update
Thursday's signals were not triggered and expired.
Today’s EUR/USD Signals
Risk 0.25% on each/any triggered trade.
Entry should be made before 5pm London time today only.
Long Trade 1
Enter long at the next bar break of an hourly pin or strong engulfing or outside bar rejecting and closing above the support level of 1.3695. If this level is not touched and rejected by the same hourly bar, or if an hourly bar closes or has closed this morning more than a few pips below this level, the trade is immediately invalidated and should not be taken. The trade is also invalidated if an hourly bar closes or has closed this morning below the nearby bullish trend line.
Stop loss at the local swing low or 1.3662, depending upon how close the entry is to 1.3695. If the entry is very close, then the lower of the two should definitely be used.
Take profit on 75% of the position at 1.3733 and tighten the stop by using a trailing stop of 40 pips. Let the rest of the position ride and take half of the remainder as profit at 1.3793.
Long Trade 2
Enter long with a limit order at a touch of 1.3655, placing a stop loss at 1.3610.
Take profit on 75% of the position at 1.3700 and tighten the stop by using a trailing stop of 40 pips. Let the rest of the position ride and take half of the remainder as profit at 1.3733.
Short Trade 1
Enter short at the next bar break of an hourly pin or strong engulfing or outside bar rejecting and closing below the resistance level of 1.3830. If this level is not touched and rejected by the same hourly bar, or if an hourly bar closes more than a few pips above this level, the trade is immediately invalidated and should not be taken.
Stop loss at the local swing high or 1.3870, depending upon how close the entry is to 1.3870. If the entry is very close, then the higher of the two should definitely be used.
Take profit on 75% of the position at 1.3755 and tighten the stop by using a trailing stop of 40 pips. Let the rest of the position ride and take half of the remainder as profit at 1.3655.
EUR/USD Analysis
There are important events scheduled today that could impact the Euro: French and German flash Manufacturing at 8am and 8:30am London time, and later the President of the ECB speaks at 2pm London time.
The uptrend faltered on Thursday and Friday with both days making lower lows and lower highs, after 6 consecutive days of the opposite. Due to this, and the fact we have likely strong support below and strong resistance above, I am taking no directional bias.
We breached the minor resistance turned support level of 1.3725, but last week's low has held well intact so far.
The higher bullish trend line is intact and is currently confluent with last week's low at around 1.3695. I have identified this as a good area to look for a long trade.
The lower bullish trend line is nearly confluent with the support level at 1.3650 which is strong and far away, and therefore a good candidate for a long touch trade.
The established resistance zone is still there from 1.3830 to 1.3860 and is confluent with a long-term 61.8% Fibonacci retracement, so I am confident to look for shorts there.
