EUR/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.1058.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be entered before 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1058 or the broken trend line currently sitting at about 1.0990.
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.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1170.
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.
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
Yesterday’s FOMC release certainly had the effect of breaking the price out of the bearish channel it had been established in. After an initial move in favour of the USD, the action then turned around dramatically with a strong weakening of the USD, and this has continued to follow through. The price broke up not only above the former resistance at 1.1058 – which can now be expected to act as support – but also is currently testing the resistance at 1.1087, which may still hold.
There is still no long-term trend here.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.