EUR/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s EUR/USD Signal
Risk 0.50%.
Entry should be made between 8am and 5pm London time today only.
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 1.3442. The trade is invalidated once an hourly bar closes below this level.
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 75% of the position as profit at 1.3540.
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 1.3583. The trade is invalidated 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 run. Take 50% of the position as profit at 1.3530.
EUR/USD Analysis
We are now firmly established within a bearish channel and as such it would seem that there is going to be more short than long potential. However yesterday did see a move up with a low established at 1.3476, slightly below the support I had identified previously at 1.3483. After falling heavily for six days we may be seeing a return to more normal ranging conditions, although there is still a safety pro-USD and pro-JPY sentiment in the markets:
There is likely support below at 1.3442 which is currently confluent with the lower trend line of the bearish channel. This level is also quite close to today’s GMT S2 pivot point. Right now we are retesting the broken bullish trend line at 1.3540 which may act as resistance. Above us the level of 1.3583, which is likely to have changed from support into resistance.
There is no important news due today during the London session for either the EUR or the USD, so today might be fairly quiet.