By: DailyForex.com
EUR/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at either 1.1234 or 1.1280.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1234.
* 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 ride.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1340.
* 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 ride.
EUR/USD Analysis
I wrote yesterday that we were likely to see another upwards move and so it proved to be. It was in fact a very strong upwards move, breaking the resistance level at 1.1234 which we can now expect to become support, and also invalidating 1.1280 although the price has since fallen off from there quite convincingly.
The daily charts are bullish but the shorter-term charts are showing a bearish pullback. As we have the FOMC release later today, action could be somewhat unpredictable ahead of that. A flattening out at 1.1234 bouncing up would look attractive for a long trade entry.
There is nothing due today concerning the EUR. Regarding the USD, there will be releases of Crude Oil Inventories at 3:30pm London time followed by the FOMC Meeting Minutes at 7pm.