EUR/USD Signal Update
Yesterday’s signals expired without being triggered as there was no bullish price action at 1.0684.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be taken 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 1.0550.
* 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.
* 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
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0800.
* 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.
* Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
EUR/USD Analysis
Even in the absence of major news yesterday, and in advance of important news today, the price broke down past previous support at 1.0684.
This is a very bearish sign and if the data due later today supports this bearish scenario, especially on the USD side, we could see a very strong move down. We are already making multi-month lows.
I see new resistance above at around 1.0690 which is confluent with this week’s opening price.
Any trend lines currently above 1.0550 are ambiguous so I prefer to focus on 1.0550 as the closest possible support.
Regarding the EUR, there will be a release of German ZEW Economic Sentiment data at 10am London time. Concerning the USD, there will be a release of CPI data at 1:30pm.