EUR/USD Signal Update
Last Thursday’s signals were not triggered as the price did not reach any of the key levels that day.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be taken before 5pm London time today only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0868.
Put 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 1.0813.
Put 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.
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 shown in the chart below which is currently sitting at about 1.1075.
Put 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.
EUR/USD Analysis
The USD was strengthening quietly at the end of last week, when some unexpected data on Friday shortly after New York opened sent the greenback plummeting. However after an hour or two the USD recovered, and so on the chart below we see that the bearish trend line again ended up holding the price, and has proved itself quite reliable. Nevertheless, it should be kept in mind that this trend line is a relatively short-term formation.
Below there are still the same key support levels at 1.0868 and 1.0813.
Overall this pair is sitting within a consolidation range albeit one with a bearish bias. This means that there is plenty of room to chop around and for the price to reverse at unexpected levels. This makes it quite dangerous to trade, but can also offer good reversal opportunities off key levels or any round number.
There is nothing due today regarding the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.