EUR/USD Signal Update
Yesterday’s signals expired without being triggered as although the price did touch 1.2550, there was a strong hourly close above that level, and hence no bearish price action from which to take a short trade.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be taken from 8am to 5pm London time.
Long Trade
Go long following bullish price action on the H1 time frame immediately following the next touch of 1.2440.
Put the stop loss 1 pip below the local swing low.
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
Unfortunately although I was correct in yesterday’s forecast that there is key resistance “around” 1.2550 I was not sufficiently flexible. A look at the H4 chart below shows a flipping resistance zone which seemed to stretch all the way up to yesterday’s high a little beyond 1.2570. The pair was unable to move beyond this level despite the EUR strength which saw the EUR shooting up against other currencies such as the JPY.
The pair is now falling from yesterday’s high, and although there is local support at around 1.2475, there is nothing to stop the pair falling all the way to 1.2440 now.
I would not look for another short trade today if we were to retest yesterday’s high. That should wait until tomorrow.
There are no high-impact news releases scheduled today concerning the EUR. At 1:15pm there will be a release of U.S. ADP Non-Farm Employment Change data, followed later at 3pm by ISM Non-Manufacturing PMI data. Therefore the New York session is likely to be more active for this pair.