EUR/USD Signal Update
Last Thursday’s signals expired without being triggered.
Today’s EUR/USD Signals
• Risk 0.75% of equity.
• Entries may only be made until 5pm today London time.
Short Trade
• Go short following a strong lower high after a major high once 1.3000 is broken to the up side.
• Place a stop loss 1 pip above the local swing high.
• Take off 75% of the position when profit is double risk and leave the remainder to run.
EUR/USD Analysis
Last week was pretty quiet, with a small range. The pair has been in a very strong downtrend but is starting to consolidate; suggesting some kind of pull back is fairly likely, unless we get a daily move down over the next couple of days breaking through some recent daily lows. We have made higher lows for the last three trading days, w2hich is indicative of a forthcoming move up. The key near resistance above us is likely to be at around 1.3000.
This pair usually does take a while to turn around, and we are in a strong down trend, so it might be that we break recent lows and again approach towards the crucial 1.2750 support level. It should be remembered that this is a key psychological number and the basis of the double bottom last year that began the long upwards trend that travelled all the way to a level just a few pips short of 1.4000. It would be very surprising if we do not get some kind of bounce off this level, especially if we get there fairly quickly. My colleague Christopher Lewis has pretty much the same take on this pair today as I do.
There are no high-impact events scheduled today concerning either the EUR or the USD. Therefore today should be a very quiet day for this pair.