EUR/USD Signal Update
Last Thursday’s signals produced both profitable long and short trades, initially off the bullish outside candle rejecting the support level at 1.0961 just as the London session opened, and then later following the very large pin candle rejecting both the resistance levels at 1.1004 and 1.1027 which formed upon the ECB announcement. It could be a good idea to take more profit off any open short trade if the price manages to get established above the resistance level at 1.0900.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 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 1.0771.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0900 or the bearish trend line currently sitting at about 1.0940.
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 last Thursday that the big picture looked bearish and that the support at 1.0961 was in danger, and was correct on both. The ECB announcement of no tapering to QE created a large drive down that pushed the price all the way to a new multi-month low of 1.0860. There is a double bottom there and the price has risen to test the new resistance at 1.0900 which has held so far. That looks like a good level at which to seek a short if it is retested with an appropriate price action failure.
There is also a bearish trend line about 40 pips above that level which looks interesting.
Regarding the EUR, there will be a release of German IFO Business Climate data at 9am London time, followed later by a speech from the President of the European Central Bank at 4:30pm. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm.