EUR/USD Signal Update
Thursday’s signals were not triggered and expired.
Today’s EUR/USD Signal
Risk 0.50%.
Entry should be made between 8am and 1pm London time today only.
Short Trade 1
Enter short with a limit sell order at a touch of 1.3650.
Stop loss at 1.3705.
Move the stop to break even when the trade is 25 pips in profit and let it run.
Long Trade 1
Enter long at the next bar break of an hourly pin or engulfing bar rejecting and closing above the support level of 1.3489. If this zone is not touched and rejected by the same hourly bar, or if an hourly bar closes above 1.3489, the trade is immediately invalidated and should not be taken.
Stop loss 1 pip below the local swing low.
Move the stop loss to break even when the trade is 20 pips in profit and let the trade ride.
EUR/USD Analysis
This pair broke down at the end of last week and almost touched 1.3500 earlier this morning. On Friday the price broke through 1.3650 which had been acting as support and this level is now likely to act as resistance going forward. This morning also has seen a test of the final bullish trend line which at the time of writing is just about holding.
The dominant phenomenon in the chart now is the establishment of a narrowing bearish channel. We are currently near the bottom of that channel, which is confluent with the bullish trend line mentioned earlier. Below us there is what should be a good support level at 1.3489, which is confluent with today’s S1 pivot point:
Things could go either way but it makes more sense to have a bearish bias down to 1.3489.
It might well be that nothing really happens today, as there is no important news due today for either the EUR or the USD, in fact it is a public holiday in the USA, so this pair is likely to be very quiet.