EUR/USD Signal Update
Yesterday’s signals might have been triggered by an hourly candle that was close to being a pin candle rejecting the support at 1.1173. This would have failed, but waiting for a further confirmation break of the subsequent engulfing candle would have kept you out of this trade.
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 1.1068 or 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.
Take off 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 1.1173, 1.1234, or 1.1258. There is also a confluence of two bearish trend lines and a round number at 1.1200.
Put the stop loss 1 pip above the local swing low.
Adjust 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 run.
EUR/USD Analysis
I wrote yesterday that the line of least resistance really did look to be downwards, and this proved to be the case with the price breaking down past the support level at 1.1173 after it was held there for a couple of hours early in the London session.
Over the past day or so the Euro has been the weakest of all of the major currencies. If the German data in the London session is poor, we can expect this to continue.
A longer-term chart shows that the area between 1.1150 and 1.1068 can be expected to be very crucial support, so it would not be a big surprise if this pair starts to recover here.
Concerning the EUR, there will be a release of German IFO Business Climate data at 9am London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm.