EUR/USD Signal Update
Last Thursday’s signals expired without being triggered as there was no bearish price action when the price reached 1.0964.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be entered before 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 the bearish trend line currently sitting at around 1.1050.
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 run.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately after the first retest that may occur following a bullish breakout above the bearish trend line at around 1.1050.
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 run.
Long Trade 2
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0868.
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 run.
Long Trade 3
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0813.
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 run.
EUR/USD Analysis
This pair stands out today for two reasons:
It is the only pair that has high-impact news for both its component currencies scheduled.
Both sides are in focus: the EUR was the strongest moving currency last week (bullishly), while the USD comes into strong focus this week with the forthcoming FOMC Statement due for release Wednesday.
Looking at the technical picture, for about one month now this pair has been forming a narrowing triangle. At the time of writing, the price is rising to test the long-term bearish trend line. A bullish breakout would not be surprising, and a retest of the other side could be a good chance to go long. Alternatively a failed test and bearish reversal could be a great short opportunity.
Concerning the EUR, there will be a release of German IFO Business Climate data at 9am London time. Regarding the USD, there will be a release of Core Durable Goods Orders data later at 1:30pm.