EUR/USD Signal Update
Yesterday’s signals gave a long off bullish price action following a bounce off a retest of the bullish trend line at around 1.0700, but unfortunately this did not quite produce the required 20 pips of profit, so it would have been a losing trade.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be entered before 5pm London time today only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0550.
Place the stop loss 1 pip below the local swing low.
Adjust 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 ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0750.
Place 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.
Remove 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
Yesterday we had a small bounce off the bullish trend line which has broken down with a very strongly bearish candle. There are no very solid supportive levels before 1.0550 although there are a few possibilities before that. Therefore we could have a fairly rapid fall now, at least during the first part of the London session. Day traders can look to enter on short time frame continuation patterns, but it would be safest to get a pull back to 1.0750 and then a resumption of the bearish move before going short.
My colleague Christopher Lewis is also bearish.
There are no high-impact events scheduled today concerning the USD. Regarding the EUR, there will be a release of German ZEW Economic Sentiment data at 10am London time.