EUR/USD Signal Update
Last Thursday’s long signal was triggered towards the end of Friday’s London session after the price bounced off 1.3485. Logically, this was also a signal to close the previous profitable short, or at least most of it, which had a great run. It was stopped out for a loss, as the price ultimately continued to fall.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be made between 8am and 5pm London time.
Short Trade
Short following bearish price action on the H1 time frame immediately following the next touch of 1.2500.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 25% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
EUR/USD Analysis
I speculated last week that we could see a bullish double bottom at around 1.2500 that would be the start of some kind of bullish move. However this did not happen and the latest development at the time of writing is that the formerly supportive level at 1.2500 is now flipping and turning into resistance, so there should be a possible short off a failure to break above this level after the London open.
There is another flipped zone, from support to resistance, not far above from 1.2539 to approximately 1.2550, which might also provide a good short trade if the level at 1.2500 does not hold and is broken to the upside.
There is no obvious support below us before 1.2250. We have just made a two-year low, in line with the long-term trend. I do not see any long opportunities.
At 3pm London time today there will be a release of U.S. ISM Manufacturing data, which is likely to have an impact upon the USD. It is likely to be a pretty quiet day for this pair.