EUR/USD Signal Update

Yesterday’s signals were not triggered. As expected 1.1025 was supportive, but the bullish price action bounce there did not occur until after the London close.

Today’s EUR/USD Signals

Risk 0.75%

Trades must be entered 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 1.0868.

• Place 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.

• Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Long Trade 2

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0813.

• Place 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.

• Take off 50% of the position as profit when the trade is 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 1.1015.

• Place 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.

• Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Short Trade 2

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line shown in the chart below which is currently sitting at about 1.1080.

• Place 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.

• Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

EUR/USD Analysis

As expected the area at around 1.1025 did provide support twice yesterday but we eventually broke down below that. This area looks to have flipped from support to resistance but I would put the peak of that resistance a little lower, at 1.1015. The whole number at 1.1000 is also likely to offer some resistance.

The broken trend line I have been showing in the charts did “work” but has now been messed around too much to be of likely future use so I have removed it. The trend line that stands out is a new bearish trend line drawn to connect three recent peaks and this should provide additional resistance above 1.1050 or so. There is a level below at 1.0868 that should provide good support, and a very crucial level at around 1.0813 which is a 3-month low.

There is also a minor double bottom at 1.0925 that could prove to be supportive.

There is nothing due today regarding the EUR. Regarding the USD, there will be a release of Advance GDP, Goods Trade Balance and Unemployment Claims data at 1:30pm London time.