EUR/USD Signal Update
Yesterday’s signals were not triggered as the price was not quite above 1.1100 at 9am London time for a long trade. This was OK as the price did not really move up even though the bullish trend line did act as a supportive floor.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be made between 8am and 5pm London time today.
Short Trade 1
• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1200.
• 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 ride.
Short Trade 1
• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1276.
• 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 ride.
Long Trade 1
• Long entry at 9am London time provided the price is above 1.1129.
• 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.
Long Trade 2
• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1013.
• 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.
EUR/USD Analysis
Surprisingly, yesterday’s FOMC has little impact on the price, and we start today pretty much where we were yesterday. There are signs of a bullish reversal pending as the trend line that I highlighted yesterday has held the price and prevented it from falling, so breaks above 1.1129 and then 1.1150 do suggest a trip to 1.1200. However there is plenty of news today for both currencies that could shoot the price around unpredictably, but I suspect any long surprises that might occur to have most impact on the price, as we are bouncing off this trend line. If the price is above 1.1128 1 hour after London opens that should also be a good sign that the price is probably going to go higher today. My colleague Christopher Lewis is also looking for support in more or less the same place as I.
There are several high-impact news releases scheduled today concerning both the USD and the EUR. Concerning the EUR, there will be a release of French Flash Manufacturing data at 8am London time, followed by the German equivalent half an hour later. At 12:30pm, the ECB will release its Monetary Policy Meeting Accounts. Regarding the USD, there will be a release of U.S. Unemployment Claims data at 1:30pm, followed by the Philly Fed Manufacturing Index at 3pm.