EUR/USD Signal Update
Yesterday’s signal was not triggered as although the price did reach 1.1458, there was no bearish price action there during the London session.
Today’s EUR/USD Signals
Risk 0.75%
Entries must 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 1.1650.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
Long Trade 1
Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.1420.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
Long Trade 2
Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.1361.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% 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
Yesterday we had a strong move up and broke the anticipated resistance at 1.1458, albeit not very convincingly.
The overall picture now looks different: quite a lot of buying pressure that has now established this pair within a bullish channel, as shown in the chart below.
We may move down from here – after all we are back to the same prices that were being quoted when the ECB launched its QE program! We can expect resistance above, especially from the upper channel trend line, and beyond that the flipped level at 1.1650.
Nevertheless, it looks like long set-ups will be more likely in the short term. There is a nice flipped level not far below us at 1.1420. Below that, there is previous resistance at 1.1361 that is currently confluent with the lower channel (bullish) trend line. This could also be a good area in which to seek a long trade.
The forthcoming moves are likely to be largely data-driven, as we approach some important USD announcements.
There are no high-impact data releases scheduled for later today concerning the EUR. Regarding the USD, at 1:15pm London time there will be a release of the ADP Non-Farm Employment Change data, followed later at 3pm by the ISM Non-Manufacturing PMI data release. This pair is likely to be more active during the New York session than the earlier London session.