EUR/USD Signal Update
Yesterday’s signal was not triggered and expired because the price never reached 1.0675.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be made between 8am and 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 1.0675.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
EUR/USD Analysis
I forecast yesterday that it was very unlikely that the price would reach 1.0675 before the close of the London session, and that forecast turned out to be correct. However there was a surprisingly strong move up yesterday, showing a strengthening of the Euro. It may be that a bottom has formed at around 1.0500 and of course there is a broken bearish trend line that seems to have acted as support very soon after the market opened this week. Note that yesterday produced the first higher low in about three weeks.
Should the move up continue to previous support at 1.0675 which has already subsequently acted as resistance, there is a good chance of getting a good short trade set up from a reversal in that area.
There are high-impact events scheduled today concerning both the EUR and the USD. At 10am London time there will be a release of German ZEW Economic Sentiment data. Regarding the USD, at 12:30 there will be a release of Building Permits data.