EUR/USD Signal Update
Yesterday’s signals were not triggered as neither of the key levels were reached, but note that the low of the day was just 6 pips above the key support level identified at 1.1234.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1234.
* 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 1.1340.
* 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
The day-to-day upwards move in this pair continues and the price is now just a few pips away from being higher than its prices from both 3 months and 6 months ago, which is my technical definition of a long-term upwards trend. There is a key resistance level not far ahead at 1.1340, and then we have to keep in mind that the area around 1.1400 has acted as a ceiling on the price again and again for more than a year now. So although things are starting to look very bullish, I still see a large question mark over how long it can go on and how far it is likely to go.
The FOMC statement was not able to boost the USD in any sustained way, with the price going on to make new highs, but the action in the chart below suggests that the price is now beginning to top out in the short term. It is quite likely to be a choppy day today.
There is nothing due today concerning the EUR. Regarding the USD, there will be releases of the Philly Fed Manufacturing Index and Unemployment Claims data at 1:30pm London time.