EUR/USD Signal Update
Yesterday’s signals were not triggered as the price did not hit the bearish trend line until after London closed.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be entered between 8am and 5pm London time today only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0868 and 1.0848, paying particular attention to the bullish trend line.
Place 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 ride.
Long Trade 2
Go long 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.
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 ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line shown in the chart below which is currently sitting at about 1.1035.
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.
Take off 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
I was wrong about it being a very quiet day yesterday as there was certainly more volatility than expected, but my support and resistance analysis was perfect, with the bearish trend line I had on the chart providing yesterday’s high at 1.1040 to the pip.
I see this pair now as “hedged” by the smart money within the consolidating triangle. It is quite likely we will now chop around within the triangle for a while. However some break to the upside later today or this week I think is quite possible. Meanwhile, the action is likely to be very choppy and difficult to trade.
The key levels are all essentially unchanged with plenty of support below from 1.0868 and resistance at the trend line at 1.1035. Note that a break above the trend line could see a strong move up through some relatively “blue sky”.
There is nothing due today regarding the USD. Concerning the EUR, there will be a release of German ZEW Sentiment data at 10am London time.