EUR/USD Signal Update
Yesterday’s signal expired without being triggered.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be taken before 5pm London time.
Take the risk off any trade open just before the ECB announcement.
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.
Short Trade
Go short following bearish price action on the 1H1 time frame H1H1H1 time frame immediately following the next touch of 1.2570.
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 mentioned yesterday that there was local support at 1.2475 and this was pretty much the low of the day. The price has risen a little bit since then but we are essentially sandwiched in between support from 1.2475 to 1.2440 (the latter is the key level), and resistance overhead at 1.2570.
The long-term trend is strongly bearish and the USD's extreme strength has been continuing, and over periods of several days this pair continues to make lows that it has not seen for more than 2 years.
It is unlikely there will be any surprises later today, therefore I expect apart from a possible spike here or there, the support and resistance levels are likely to be respected.
There are high-impact news releases scheduled today that are likely to affect both the EUR and the USD. At 12:45pm London time there will be announcement by the ECB of the Minimum Bid Rate for the EUR followed by their press conference later at 1:30pm. At the same time, there will be a release of U.S. Unemployment Claims data. This pair will probably be quiet until around the beginning of the New York session.