EUR/USD Signal Update
Yesterday’s signals were not triggered as the price did not reach either 1.2900 or 1.2697 during the London session.
Today’s EUR/USD Signals
Risk 0.75%
Take trades only between 9am and 5pm London time.
Short Trade
Go short following bearish price action on the H1 time frame off a break below and retest of the lower trend line shown in the chart below.
Place the stop loss 1 pip above the local swing low.
Adjust the stop loss to break even when the trade is 25 pips in profit.
Take off 25% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
Long Trade
Go long following bullish price action on the H1 time frame, especially if it is a bounce off the lower trend line shown in the chart below.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the trade is 25 pips in profit.
Take off 25% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
EUR/USD Analysis
I wrote yesterday that whether the price could break above 1.2840 was crucial. We failed to do so and fell strongly. Overnight, the price came very close to touching the bullish lower channel trend line which is a logical place at which to look for a long trade. As we are so close to the trend line and show some minor signs of bottoming out, I would take a long trade here off good bullish price action on the H1 chart.
Alternatively, a break to the down side of the channel trend line followed by a retest from the other side of the broken line could be a good trigger for a short trade entry.
There are no high-impact data releases scheduled today concerning the EUR. Regarding the USD, there will be a release of Core CPI data at 1:30pm London time.