EUR/USD Signal Update
Yesterday’s signal was not triggered and expired.
Today’s EUR/USD Signals
Risk 0.75% of equity.
Entries must be prior to 5pm London time today.
Short Trade
Short entry following a strong lower high after a major high once 1.3000 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 double risk and leave the remainder to run.
EUR/USD Analysis
Yesterday was a quiet day as expect, which did not add much to the overall picture beyond another day’s low more or less holding. However the volatility has been very low so we are not exactly seeing a bullish picture. What seems to be happening is that we are stuck between 1.3000 above and 1.2850 below, and the market needs to break out one way or the other. The price action is slightly bullish but not strongly enough to really give us any clues. For this reasons, as we are in a long-term downwards trend, I would still be looking for short opportunities if we pull back to 1.3000 and then reverse with some momentum.
There is then the issue of how much lower can we go. We approaching a very crucial support level at 1.2750, so there may not be a lot of down side left before a sizeable pull back would happen.
There are high-impact events scheduled today concerning both the EUR and the USD. At 10am London time there will be a release of German ZEW Economic Sentiment data, followed later by US PPI data at 1:30pm. Therefore today should be a more active day for this pair.