EUR/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s EUR/USD Signal
Risk 0.50%.
Entry should be made before 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 bounce off 1.3830. The trade should not be entered once an hourly bar closes above this level.
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 ride. Take 50% of the position as profit at 1.3780.
EUR/USD Analysis
Yesterday this pair was fairly quiet. The price reached close to the previous day’s high and fell off before recovering overnight.
We are within a long-term bullish uptrend and have recently broken out of a bearish channel, suggesting an upwards move, but there does not seem to be much bullish strength within it. Having said that, we can draw a new steep bullish trend line, beginning at about the 5th of February (see the chart below). It might be the case that the next substantial move down will begin with a break of this trend line to the down side:
There is no really strong support level below us before 1.3551. However I suspect that 1.3700 or a few pips above that level will see some minor support. At the time of writing, the price action suggests there will be some kind of down move today, although I am only looking for a short at the moment should the price get up above the 1.3800 level. Christopher Lewis also thinks there might be a good short trade here.
There are important data releases today for both the EUR and the USD so the pair should be fairly active, certainly more active than it was yesterday. Concerning the EUR, there is French Flash Manufacturing at 8am London time and German Flash Manufacturing at 8:30. Concerning the USD, there is major data at 1:30pm (Core CPI and Unemployment Claims), followed by the Philly Fed Manufacturing Index at 3pm.