EUR/USD Signal Update

Yesterday’s signals were not triggered as the bullish price action occurred below 1.1213.

Today’s EUR/USD Signals

Risk 0.75%

Trades must 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 1.1162.

* 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 run.

Short Trade 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1315.

* 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 run.

EUR/USD Analysis

I wrote yesterday that “this is one of the most strongly trending currency pairs and so it is probably a good idea to maintain a bullish bias and to generally look to try to get long…The Chair of the Fed will be speaking later today and her remarks might move the USD quite a bit in this febrile market environment so watch out for that.” That turned out to be good advice, as Yellen’s remark’s sent this pair plunging, down below both of the support levels above 1.1200 I had outlined, before it reversed sharply and came back to touch the resistance at 1.1315 again during the Asian session.

The chart below shows how we have a double bottom at 1.1162 which has now become new key support, and also a double top at 1.1315, so we are between those two levels. There are no more key resistance levels before the psychologically key number of 1.1500, so a bullish break up could see faster upwards movement.

I am maintain a bullish bias. This is the most strongly trending Forex currency pair right now, along with USD/JPY, and both trends are against the USD.

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. The Chair of the Federal Reserve will be testifying before Congress at 3pm.