EUR/USD Signal Update
Last Thursday’s signal was not triggered as the price never touched 1.0790.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm London time.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the first test of 1.0675.
Place 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.
Remove 50% 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 forecast last Thursday that having hit 1.0500 we may be beginning to bottom out, and so far with the price action overnight combined with the earlier bounce off the broken bearish trend line shown on the chart below, we may well now have some kind of move up from the 1.0500 area. My colleague Christopher Lewis also thinks so.
The first obvious key resistance is at 1.0675 which could provide a good opportunity to get short or add to any long-term short position, as it confluent with a bearish trend line. If the price really breaks above that level, it would suggest a deeper pull back.
It seems unlikely in any case that the price will reach 1.0675 today before London closes.
There are no high-impact events scheduled today concerning the USD. Regarding the EUR, at 6:45pm London time the President of the ECB will be speaking at a minor event.