EUR/USD Signal Update
Yesterday’s signals were not triggered as there was not sufficiently bullish price action at 1.1302.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be taken before 5pm London time today only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1234 or 1.1173.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1302, 1.1337 or the broken bullish trend line.
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 this pair made a classic bearish breakdown from its relatively long period of consolidation around 1.1400, as the very long-term resistance above 1.1400 was just too strong for the bulls to break. There was firstly selling off 1.1400, an easy break below 1.1337 and then a little more support at 1.1302 but even that eventually broke down, with the second supportive trend line being retested after it was broken to become effective resistance.
The action still looks bearish, suggesting that the price has further to fall, possibly to the next supportive level at 1.1234 although we can expect some support perhaps a little earlier at the key psychological level of 1.1250.
The formerly supportive levels can be expected to have flipped to resistance.
There is nothing due today regarding the EUR. Concerning the USD, there will be releases of CPI and Unemployment Claims data at 1:30pm London time.