EUR/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s EUR/USD Signals
Risk 0.75%.
Entries may only be made before 5pm London time today.
Long Trade
Go long after a next bar break of any bullish pin or engulfing hourly candle that forms following a first touch of 1.3825. Once two hours have elapsed following the close of the first hourly candle that closes below 1.3825, the trade should not be taken.
Put a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price has moved to 20 pips in profit. Take off 75% of the position as profit at 1.3890, and leave the remaining 25% to ride.
Short Trade
Go short after a next bar break of any bearish pin or engulfing hourly candle that forms following a first touch of 1.3975. Once two hours have elapsed following the close of the first hourly candle that closes above 1.3975, the trade should not be taken.
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price has reached 1.3925. Take off 50% of the position as profit at this point, another 25% at 1.3860, and leave the remaining 25% to ride.
EUR/USD Analysis
Yesterday was a quiet day as expected, and was slightly bullish but only very weakly so. The price is really unable to get beyond the upper channel trend line that currently sits above us at 1.3935, and has been acting as resistance. Below us the broken and retested bearish trend line is currently confluent with the supportive level at 1.3825, and there is also a shorter-term bullish trend line very close to that level, so we might get some great support there should the price return to it.
Although we may have good resistance at 1.3935 and 1.3955, I will not be looking for a short before 1.3975 as that is the nearest fresh level that has not yet been touched.
Today there are important economic data releases for both EUR and USD so this pair should be busier than it was yesterday. At 10am London time there is the ZEW German Economic Sentiment and later at 12:30pm there will be data from the U.S.A. as the Building Permits and Core CPI numbers are released.