EUR/USD Signal Update
Yesterday’s signals produced a profitable long trade on the bullish inside bar break on the H1 chart rejecting the support zone at 1.1068. It would probably be a good idea to take some partial profit.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be taken between 8am and 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 entry into the zone between 1.1068 and 1.1035.
* 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 touch of 1.1338.
* Put the stop loss 1 pip above the local swing high.
* Adjust the stop loss to break even once the trade is 25 pips in profit.
* Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
EUR/USD Analysis
Yesterday was dominated by the FOMC releases. The Federal Reserve sees U.S. inflation outlook as weak, global growth beset by problematic spots, and the U.S. economy due two rather than four rate hikes later this year. This caused the market to turn decisively against the USD, which fell everywhere, and for the first time in a long while, most of the major global currencies are solidly bullish against the greenback.
The EUR is more subdued than most, which is not surprising as the Eurozone is one of those problematic spots that was highlighted. However the pair rose strongly from the supportive area where it had been resting before the releases, and now seems to have invalidated the possible resistance a little way above 1.1200. Unless there is a meaningful pullback very soon, 1.1338 will come into sight.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims and Philly Fed Manufacturing Index data at 12:30pm London time.