EUR/USD Signal Update
Yesterday’s signals were not triggered as the price never reached either 1.3693 or 1.3650.
Today’s EUR/USD Signals
Risk 0.50%
Entries must be made before 5pm London time today.
Long Trade 1
Buy following confirming H1 price action at the first touch of the major bullish trend line currently at around 1.3700.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 1.3725.
Take off 25% of the original position at each of the following levels: 1.3725, 1.3750, 1.3775, and 1.3800.
Long Trade 2
Buy following confirming H1 price action at the first touch of 1.3750.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the trade is in profit by 20 pips.
Close the trade at 1.3795.
EUR/USD Analysis
Yesterday saw some bullish developments: a strong upwards move that stalled just above 1.3800. We had a bullish engulfing bar on Friday off a long-term bullish trend line and this move up was the follow through from that. As we broke up, we also breached the bearish trend line that has formed during the move down since we reached a multi-year high a few weeks ago.
The move up may be exhausted for now as it reached fairly significant resistance at 1.3800 and has been falling off from that since the Frankfurt open, as at the time of writing. A pull back to around the key psychological level of 1.3750 which has probably flipped from minor resistance into minor support, would not be surprising.
The market is awaiting the only significant news even due today, which is the release of the FOMC meeting minutes. This will have a bearing on USD sentiment and therefore it is likely that there will not be any really significant moves until this release, which occurs after the London close.
As the higher time frames look uniformly bullish, I am looking for long trades at around 1.3750 and 1.3700 if they are confirmed by price action. The 1.3750 is quite confluent with yesterday’s broken bearish trend line, as well as today’s GMT S1 daily pivot point.
There are no high-impact news releases due today concerning either the EUR or the USD. It is likely to be a fairly quiet day as we are awaiting the release of the FOMC meeting minutes at 7pm London time.