EUR/USD Signal Update
Last Thursday’s signals were not triggered as the price did not reach either 1.3715 or 1.3875.
Today’s EUR/USD Signals
Risk 0.50% on the first signal triggered and 0.25% on any subsequent signals.
Entry may be made between 8am and 5pm London time today.
Long Trade 1
Enter with a long trade after a next bar break of any bullish pin or engulfing hourly candle occurring after a first touch of 1.3715. Following one hour from the close of the first hourly candle below 1.3715, this signal is invalidated.
Place the stop loss one pip under the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit. Remove 75% of the position as profit at 1.3765, and leave the remaining 25% to ride.
Long Trade 2
Enter with a long trade after a next bar break of any bullish pin or engulfing hourly candle occurring after a first touch of 1.3695. Following one hour from the close of the first hourly candle below 1.3695, this signal is invalidated.
Place the stop loss one pip under the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit. Remove 75% of the position as profit at 1.3740, and leave the remaining 25% to ride.
Long Trade 3
Enter a long limit buy order at the first touch of 1.3650.
Place the stop loss at 1.3620.
Adjust the stop loss to break even once the trade is 25 pips in profit. Take off 75% of the position at 1.3710, and leave the remaining 25% to ride.
Short Trade 1
Enter with a short trade after a next bar break of any bearish pin or engulfing hourly candle occurring after a first touch of 1.3844. Following one hour from the close of the first hourly candle above 1.3844, this signal is invalidated.
Place the stop loss one pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit. Remove 75% of the position as profit at 1.3770, and leave the remaining 25% to ride.
EUR/USD Analysis
Last Thursday saw a continuation of the move down with a break of the bullish channel’s lower trend line that has held since early February. Friday then saw a small pull back to the broken trend line, which has flipped and held to the other side. These are bearish signs, and additionally there have been two levels above us which have flipped from support to resistance, at 1.3844 and 1.3808 respectively.
In spite of the bearish picture, there is a still an intact bullish trend line below us that has held for 6 months. It is quite confluent today with key support levels at 1.3715 and 1.3695 so we are likely to find some support if we move down to that zone soon.
A candlestick analysis of the higher time frames shows the daily and weekly charts looking very bearish, but the monthly is still showing bullishness.
It looks like it will be difficult for the price to make any sustained upwards move right now as we have a confluence of two trend lines just above us as well as a resistance level at 1.3808, however at the time of writing this is too close a level at which to look for a short trade.
There are no important data releases due for the USD today. Regarding the EUR, there is German Flash Manufacturing PMI at 8:30am London time. It is likely to be a relatively quiet day.