EUR/USD Signal Update
Yesterday’s signals expired without being triggered as the price never reached either 1.3695 or 1.3814.
Today’s EUR/USD Signals
Risk 0.50%
Entries must be made before 5pm London time today.
Long Trade 1
Long entry following confirming bullish price action on the H1 chart after the first touch of 1.3695.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 1.3740.
Take off 75% of the position as profit at 1.3740 and leave the remainder of the position to ride.
Short Trade 1
Short entry following confirming bearish price action on the H1 chart after the first touch of 1.3814.
Put a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 1.3775.
Take off 50% of the position as profit at 1.3775 and leave the remainder of the position to ride.
EUR/USD Analysis
As expected, yesterday was a quiet day, with the price just ranging between a now-bearish trend line and the support level at 1.3748, as can be seen in the chart below.
The move down has been sharp and sudden and usually with this pair, there is a pull-back after such an event. Although things look very bearish, it seems most likely that the price will rise to at least 1.3814 before making any further serious stab downwards. There is a trend line that is confluent with that level right now so if the price were to spike up there today it would probably be a good level at which to seek a short trade.
If we do move downwards next without a pull-back, the next supportive level is likely to be at around 1.3695, where I would look for a long.
At 10am London time, the German ZEW Economic Sentiment data will be released which is likely to affect the EUR. Later at 1:30pm, there will be a release of US Retail Sales and Core Retail Sales data.