EUR/USD Signal Update
Yesterday’s signal to go short at around 1.0790 was not trigged as this level was never hit.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be made before 5pm London time only.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the first test of 1.0790.
Put the stop loss 1 pip above the local swing high.
Adjust 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
I forecast yesterday that the extreme bearishness continues but also that a pull-back is overdue. The strong bearishness did in fact continue and during the Asian session the price finally hit the key psychological level of 1.0500. Without wanting to call a bottom arbitrarily, it would not be surprising if we have made some kind of bottom there, especially because the price has been rising very strongly and is even threatening at the time of writing to break the steepest bearish trend line shown in the chart below. If this line is broken, it looks like the price will retrace towards 1.0700 and possibly even 1.0790.
There are no high-impact events scheduled today concerning the EUR. Regarding the USD, at 12:30pm London time there will be releases of Retail Sales and Unemployment Claims data.