EUR/USD Signal Update
Yesterday’s signals were not triggered and expired. The signal to go short at the London open just missed being triggered by a few pips unfortunately, as the trade would have produced a winner.
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 with a limit sell order at a touch of 1.3648.
Stop loss at 1.3705.
Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take half the position as profit at 1.3585.
Long Trade 1
Enter long with a limit buy order at a touch of 1.3489.
Stop loss at 1.3444.
Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take half the position as profit at 1.3545.
EUR/USD Analysis
This pair was quiet yesterday.
The dominant phenomenon in the chart now is the narrowing bearish channel that we have been established in since late last month. We are currently towards the bottom of that channel and a crucial test is upon us. Although the bullish trend line below us is not really holding, we are either going to break down through the bottom of this bearish channel or swing up and break out of the top of it.
Below us there is what should be a good support level at 1.3489; it is confluent right now with the lower trend line of the bearish wedge channel and also close to today’s S2 pivot point, so I am confident to see a long touch trade there.
Above us there is resistance at 1.3648 which has recently also acted as support, it is a little way beyond today’s R3 pivot point and about 100 pips away from the current price, so I am also confident to see a short touch trade there.
There is minor resistance at 1.3578
I partially agree with Christopher Lewis’ analysis as far as he says that there is a lot of support at around 1.3500, but I do not think we are ready to move up yet until we get a little below that level first..
There is no important news due today for either the EUR or for the USD. However there are World Economic Forum meetings that might produce an event that could move this pair. There is also GBP news due at 9:30am London time that could affect the pair.