EUR/USD Signal Update
Last Wednesday’s signals gave a good winning short trade off a rejection of the broken bullish trend line at around 1.0800. If taken off the bearish engulfing candle on the hourly chart, it would have given about 100 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be entered before 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0800.
Place the stop loss 1 pip below the local swing low.
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 ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0900.
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.
Short Trade 2
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0950.
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
The broken bullish trend line was expected to act as mobile resistance in my previous analysis, and it did act this way both that day and then again later in the week. This trend line has had several hits over time and therefore can be respected as potentially powerful.
Above the current price there is also a longer-term bearish trend line that is now providing an area of confluent resistance with the horizontal level and whole number at 1.0900. This should be an excellent area in which to seek another short trade. There is also another level above that at 1.0950.
My colleague Christopher Lewis sees key resistance a bit higher than this, at around 1.1000.
There are no high-impact events scheduled today concerning either the EUR or the USD.