EUR/USD Signal Update
Yesterday’s signal expired without being triggered.
Today’s EUR/USD Signal
Risk 0.75%.
Enter only until 5pm London time today.
Short Trade 1
Enter short at the first touch of 1.3830 that occurs during the London session today.
Put a stop loss at 1.3860.
Move the stop loss to break even when the trade is 25 pips in profit. Take 50% of the position as profit at 1.3780.
EUR/USD Analysis
The pair was quiet yesterday, ranging indecisively and producing a doji candle on the daily chart. For about a whole week now, the price has been ranging between approximately 1.3700 and 1.3775.
We are hugging the lower trend line of the bullish channel that we have become established in. Therefore a real break today below 1.3700 could see a further fall to a point below that, especially if it followed by a failed retest of the broken trend line from the other side, though it is hard to see an obvious target for any move down to reach. I cannot identify any really strong support level until we get down to 1.3550, which is now too far away from the current price to be relevant to us. On the other hand, there is a strong and obvious resistance zone above us, stretching from 1.3830 to 1.3860, so I am looking for a short trade if the price should reach that area during the London session today.
Christopher Lewis sees this pair as stuck between 1.3700 and 1.3800 and therefore wants to be on the side. I disagree and think that a week is a little too long for this pair to be stuck, and that we are likely to see some kind of breakout soon.
There is no important EUR-related data scheduled for release today. For the USD, there is BC Consumer Confidence data that will be released at 3pm London time today. We may well be due for another fairly quiet day today.