EUR/USD Signal Update
Last Thursday’s signals expired without being triggered as the price did not hit either 1.3643 or 1.3748.
Today’s EUR/USD Signals
Risk 0.75%
Entries must be made before 5pm London time today.
Long Trade 1
Go long following confirming bullish price action on the H1 chart after the first touch of 1.3643.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.3740.
Remove 75% of the position as profit at 1.3695 and the remainder of the position at 1.3740.
Short Trade 1
Go short following confirming bearish price action on the H1 chart after the first touch of 1.3748.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.3720.
Remove 50% of the position as profit at 1.3720, 25% at1.3695, and the final 25% at 1.3655.
EUR/USD Analysis
Last Thursday saw the price race down to within just a few pips of the support level at 1.3643 before roaring up again to print a bullish pin bar by the end of the day. There was no daily close below 1.3695, so although this support was heavily penetrated it held in a sense. This was a sign that we may now get some kind of overdue bullish pull-back in this pair.
However the next day was mildly bearish, there was no sign of any bullish momentum.
The result of all this is to leave us ready to take both long and short trades. The support below us at 1.3643 has been shown to have some buying in it, and it feels likely given that 1.3695 has more or less held so far that we are going to see 1.3750 next. The resistance there could provide a very good shorting opportunity, as there are two recent daily lows there (including one from a bearish inside bar), today’s GMT R2 pivot point, and a significant trend line is not far from that point also.
As things are fairly close and uncertain, I would look for confirming price action on the H1 chart before entering any trade today.
The fact that some support has finally held suggests we are not going to have any more dramatic downwards moves for a while at least.
There are no high-impact news releases scheduled today concerning the USD. At 8am London time, the President of the German Central Bank will be speaking, which might affect the EUR.