EUR/USD Signal Update
Last Thursday’s short signal to go short after a strong lower high following the London open was triggered on a shorter time frame, and has already reached a profit of twice risk. Leave the remainder to run for the time being and move the stop loss to break even.
Today’s EUR/USD Signals
Risk 0.75% of equity.
Entries may only be made between 8am and 5pm London time today.
Short Trade 1
Short entry following a strong lower high after a major high once 1.3220 is broken to the up side.
Put a stop loss 1 pip above the local swing high.
Remove 75% of the position when profit is triple risk and leave the remainder to ride.
Long Trade 1
Long entry following bullish price action on the H1 time frame after the first touch of 1.3081.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 1.3100.
Remove 75% of the position as profit at 1.3183 and leave the remainder of the position to ride.
EUR/USD Analysis
My identification of a short opportunity was correct, and the area close to 1.3155 was supportive for a while, but we have broken down through that level. The strong downwards trend in this pair continues, due primarily to the weakness of the EUR. The EUR has been the weakest currency over the past several months, and the USD has also been very strong. There is no end to the downwards trend in sight so a bearish bias should be maintained.
There is likely support below beginning at 1.3081, and of course the key psychological level further down at 1.3000. These are likely areas for the trend to pause or possibly reverse.
There are no high-impact data releases scheduled for either the EUR or the USD. Therefore today is likely to be a very quiet day for this pair.