EUR/USD Signal Update
Last Thursday’s signals produced a profitable short trade following the strong outside candle rejection of the resistance level identified at 1.0865. It would be a good idea to take further profits if the trade is still open.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0520 or 1.0462.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0589 or 1.0684.
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 ECB announced a future tapering of its quantitative easing program. This had the logical effect of sending the Euro rising sharply, but as soon as it hit the resistance level of 1.0865 it began to fall like a stone, although it seems to have bottomed out a little way above 1.0500 which has been a supportive area both within recent weeks and historically.
The overall trend is towards a stronger U.S. Dollar but this pair may be due a pull back today, so could rise. The support should certainly hold.
There is nothing due today regarding either the EUR or the USD.