EUR/USD Signal Update
Yesterday’s signals were not triggered.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1288 or 1.1258.
Place 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.
Remove 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 touch of 1.1477 or 1.1505.
Place 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.
Remove 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 this bias must still be bullish, as an eventual upside breakout looks likely in both the long term and short term. I had thought the price was quite likely to take a dip first before rising to make new highs.
We can see from the chart that the price finally started to rise a little yesterday, although it has been falling back down below 1.1400 during the Asian session.
I still think it might need a more substantial move down before a strong upwards move really gets going.
There is also the fact that this area above 1.1400 has been a key limit on the price of this pair over the past 18 months. Therefore it is a very pivotal zone. It might again cap the price and produce a move down of several hundred pips. Alternatively, as pressure has built up for a long time, a bullish breakout might see a strong upwards move to 1.2000 or even beyond there, with lots of blue sky above 1.1500.
Concerning the EUR, the President of the ECB will be speaking at the Brussels Economic Forum at 8am London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.