EUR/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be entered before 5pm London time today.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1000.
* Put 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.
* Remove 50% of the position as profit when the price reaches 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 entry into the zone between 1.1136 and 1.1151.
* Put 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.
* Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run
EUR/USD Analysis
Yesterday was a very big day for the Forex market in general and for this pair in particular. The price broke with great strength and conviction up through very strong resistance around the key psychological number of 1.1000 – and the consolidating triangle - and subsequently reached as high as 1.1145 before falling off. If the price can now hold up above 1.1000 I would say that this pair is in a long-term upwards trend, with a double bottom at around 1.0500, heading up in the direction of 1.2000. This is a really big change in the Forex market as the market. It was sparked by poor economic data coming from the U.S. which has caused the market to lose a lot of faith in the health of the economy and the USD. Of course, data due later today and in particular the Non-Farm Payrolls due tomorrow could either confirm or even reverse this picture if the number is extremely positive.
I see the most likely scenario as a pullback today to somewhere between 1.1000 and 1.1050 and then perhaps another rise tomorrow if the data is relatively poor.
This pair does not usually take off for very long, but ranges as it trends. As there are plenty of resistant levels not far overhead, do not expect very fast price rises.
Concerning the EUR, the President of the ECB is speaking at 8am London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.