EUR/USD Signal Update
Yesterday’s signals were not triggered and expired. The minor resistance I identified at 1.3578 would have been good for a short day trade.
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 stop sell order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3648. Once an hourly bar closes above that level, the trade is invalidated.
Stop loss at the local swing high.
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 stop buy order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3489.
Stop loss at the local swing low.
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 very quiet yesterday, and the action is choppy and directionless.
We are still contained within the narrowing bearish channel that we have been established in since late last month. We are currently at about the middle 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 fairly confluent right now with the lower trend line of the bearish wedge channel.
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.
There is minor resistance intact at 1.3578.
I basically agree with Christopher Lewis’ analysis today, he also sees resistance at 1.3650, but unlike him I am not looking to buy at a break of yesterday’s high.
There is important news due today for both the EUR and for the USD, so today we should finally get some movement with this pair. There is German Flash Manufacturing at 8am London time followed by French Flash Manufacturing at 8:30. Later there are U.S. Unemployment Claims at 1:30, then Existing Home Sales at 3pm.