EUR/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at either 1.1005 or 1.1071.
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 2
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.
EUR/USD Analysis
Yesterday saw the price explode upwards with a rise on the day of over 2%. This is an extremely bullish move. We blasted cleanly through two resistance levels at 1.1005 and 1.1071. We can expect 1.1005 to flip to now become a key supportive level but above that it is really anyone’s guess where support might be. Very often huge moves like this give back a lot, acting as “hidden gaps”.
Above, the picture is much clearer, with a resistant level, round number and well-established trend line very likely to block any further advance at around 1.1200 therefore providing a possibly good location for a short trade. Above that there is further resistance at 1.1276.
There are high-impact events scheduled today for both the EUR and the USD. Regarding the EUR, there will be a release of the Minimum Bid Rate at 12:45pm London time followed later by an ECB Press Conference at 1:30pm. Concerning the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm followed by Trade Balance numbers at 1:30pm. Then at 3pm there will be a release of ISM Non-Manufacturing PMI data.