EUR/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s EUR/USD Signal
Risk 0.50%.
Entry should be made between 8am and 5pm London time today only.
Short Trade 1
Enter short at the next bar break of an hourly pin or engulfing bar rejecting and closing below the resistance zone of 1.3715/27. If this zone is not touched and rejected by the same hourly bar, or if an hourly bar closes above 1.3727, the trade is immediately invalidated and should not be taken.
Stop loss 1 pip above the local swing high.
Move the stop loss to break even when the trade is 30 pips in profit and let the trade ride.
Short Trade 2
If the price at 8am London time opens at 1.3633 or lower, take a short 1 pip below the low of the hourly candle that closed at 7am, provided its high is not broken first and the candle is less than 30 pips long.
Stop loss 1 pip above that hourly candle’s high.
Take profit when reward to risk equals 1:1.
Long Trade 1
Enter long with a limit buy order at a touch of 1.3489.
Stop loss at 1.3444.
Move the stop to break even when the trade is 45 pips in profit and let it run.
EUR/USD Analysis
The USD rallied strongly yesterday but did not really do so against the EUR which actually tried to rise before falling overnight. There are two bullish trend lines which are holding so far, the short term trend line is in danger right now. A break of the longer-term trend line would be significant.
Things could go either way and I see no recent significant developments that invalidate the support at 1.3489 or the resistance at 1.3715/27.
I am not giving this as a signal but it could be possible to trade long off the longer-term bullish trend line, which is currently confluent with today’s S3 daily pivot point:
However as this line was touched three times very recently, I feel it to be in danger of breaking down.
There is no important news due today for the EUR. The key thing about today is that there are important news and events that can affect both the GBP and the USD. The GBP event may affect the EUR. There is important news due for the USD at 1:30pm London time (PPI), and the Governor of the Bank of England is speaking shortly afterwards, beginning at 2:15pm.