EUR/USD Signal Update
Last Thursday’s signals produced a profitable short trade following the bearish inside candle rejection of the resistance level at 1.0479, but it only gave the minimum 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0418 or 1.0372.
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 1.0589.
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
The chart below shows that a bullish Quasimodo pattern has formed based on the 1.0350 – 1.0372 area, and this produced a very sharp spike up at the end of last week which was an Asian session minor “flash crash”. The price has sold off from the highs and looks to be on its way down again as we approach the opening of the London session. There is a long-term bearish trend so following any bearish momentum would seem to be a good tactic. The support at 1.0418 may be an obstacle but the levels below look likely to be stronger.
Above, there is a wide-open space all the way to 1.0589.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.