EUR/USD Signal Update
Yesterday’s signal was not triggered and expired as the price never reached 1.1458.
Today’s EUR/USD Signals
Risk 0.75%
Entries can only be taken before 5pm London time.
Short Trade 1
Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.1458.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to ride.
EUR/USD Analysis
We have been consolidating for several days now within a fairly narrow area. There is enough buying to prop the price up and prevent it from falling. This could be seen yesterday when the price fell slightly to test the whole number at 1.13 and failed to break below it.
Last week was an inside week, and there have been several consecutive days that have all remained within the range of a single mother day last week. This is a sign of a fairly serious consolidation.
However we are still technically well within a long-term strong downwards trend. Therefore it would not be surprising if we were to make a stab up before falling sharply, or simply break down. The obvious strong resistance above that would be a perfect launching point for a strong downwards move remains at 1.1458.
My colleague Christopher Lewis agrees with my bearish bias.
There are no high-impact data releases scheduled for later today concerning the EUR or the USD. At 8am London time there will be a release of Spanish Unemployment data, which could affect the EUR.