EUR/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s EUR/USD Signals
Risk 0.50%
Entries must be made before 5pm London time.
Long Trade
Enter long after a next bar break of any bullish pin or engulfing hourly candle following the first touch of 1.3715.
Put a stop loss 1 pip below the swing low.
Move the stop loss to break even and sell half of the position as profit when the trade is 25 pips in profit. Take off another 25% of the original position at 1.3840 and leave the remainder to run.
Short Trade 1
Go short with a sell limit order at 1.3878.
Put a stop loss at 1.3913.
Adjust the stop loss to break even when the trade is 25 pips in profit. Take off 75% of the position as profit at 1.3805, and leave the remainder to run.
EUR/USD Analysis
We have seen some support at 1.3750 but the action has been fairly choppy and indecisive. Trend lines are being abused and so have had to be deleted from the picture. It is hard to say what will happen next. We are back below the long term bearish trend line that we briefly popped above. However there is still good support and bullish trend lines below. A candlestick analysis of the higher time frames shows a fairly bearish picture.
As things are quite uncertain I am comfortable going either long or short for modest profit targets. Christopher Lewis also recommends going for small moves.
There are no important data releases due for the EUR today. At 12:30pm London time there will be a release of Unemployment Claims data for the USD, followed by Pending Home Sales at 2pm. Today is likely to be the most active day of the week so far with this pair.