EUR/USD Signal Update
Yesterday’s signals might have given a short trade following a bearish piercing candle as a bearish reversal off 1.1365. The trade would be stopped out at break even by now.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be made before 5pm London time today.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1179.
Put 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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1365.
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 run.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1450.
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 run.
EUR/USD Analysis
I wrote yesterday that I had more faith in the resistance at 1.1365 than the bearish trend line below it and this was an accurate prediction of the situation. The price shot up but reversed quite strongly off that resistance, and we are now back in a choppy area. The price is stalling and this is because we are coming closer and closer to the corner of a narrowing triangle. From here, the price is either going to break up past 1.1365 or fall. If it falls and breaks the supportive trend line, it could fall quite quickly to 1.1179.
As we have now made a double top at around 1.1365, it would not surprise me if the next move is down. However the long-term trend is still bullish, although the supportive trend line is less valid that the resistant one above the current price.
There are no high-impact events scheduled today for the EUR. Regarding the USD, there will be Retail Sales and Unemployment Claims data released at 1:30pm London time.