EUR/USD Signal Update
Yesterday’s signals produced a profitable short trade following the rejection of the resistance level at 1.1053.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be entered before 5pm London time today only.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1053.
* 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.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0900.
* 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 price reaches 20 pips in profit and leave the remainder of the position to ride.
EUR/USD Analysis
The price was not really able to get above the anticipated resistance yesterday, so it fell from 1.1053, before turning around yesterday towards the New York close which is typical for this pair. Of course there is news for both currencies today but the big even is the expected rate hike by the Federal Reserve that will probably be announced after the London close later. This pair looks well placed to fall to 1.0800 if the hike is announced as expected. However the Euro has shown a lot of strength lately, so if the Fed passes on the hike we should expect a rise. The problem with that scenario is that there is a lot of resistance above 1.1053 so it might be hard for the price to really penetrate much. I do not have it marked as a level in the chart but I think 1.0900 will be supportive before the announcement so a long trade is possible from a bullish bounce off that level.
Regarding the EUR, there will be a release of French Flash Manufacturing data at 8am London time followed by German Flash Manufacturing half an hour later. Concerning the USD, there will be a release of Building Permits data at 1:30pm, followed by the FOMC at 7pm.