EUR/USD Signal Update
Yesterday’s signals expired without being triggered as the price did not quite reach 1.0707.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be taken before 5pm London time today.
Protect any open trades by 6:30pm.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0707.
* 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.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0800 and 1.0810.
* 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
I wrote yesterday that if the price could break 1.0790 again it would be a bearish sign that we may be challenging the 1.0700 level quite soon, and that this was the more likely scenario for the day. I was proven to be quite right as this is exactly what played out, with the price falling all the way down to 1.0710. The market seems poised to continue in the same way with a flight to safety as stocks fall and the USD and JPY gain. The next hurdle will probably be support at around 1.0700. Later after London closes we will get the FOMC Meeting Minutes which, if they turn out to be more bullish than expected, could really push this pair down and perhaps even challenge 1.0550 and the multi-year lows not far below that.
There is nothing due today concerning the EUR. It is a public holiday in Italy. Regarding the USD, there will be a release of the ADP Non-Farm Employment change at 1:15pm London time, followed by Trade Balance data at 1:30pm and ISM Non-Manufacturing PMI data at 3pm. Finally there will be a release of the FOMC Meeting Minutes at 7pm.