EUR/USD Signal Update

Yesterday’s signals gave a perfect long entry off the lower trend line following the bounce off 1.0575 and the bulling outside candle on the H1 chart. This trade has already given 20 pips of profit and is now at breakeven.

Today’s EUR/USD Signals

Risk 0.75%

Trades may only be made before 5pm London time today.

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0550.

* Put 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 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 the bearish trend line currently sitting around 1.0698, especially if the bearish rejection here also touches 1.0700 or higher.

* Put 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 ride.

EUR/USD Analysis

I had outlined in recent charts how, being very well established within a wide bearish channel, the price become established within a less steeply bearish inner channel. This structure can still be seen in the chart below.

Yesterday the price fell and finally reached that lower inner channel trend line, reversing and bouncing bullishly as forecast, giving a long trade opportunity.

The bearish trend line above is now very confluent with 1.0700 so this trend line, possibly in conjunction with that round number, should offer good resistance today if reached.

Yesterday’s candle was a wide outside doji so the next direction is very hard to predict. A period of consolidation around 1.0625 would not be surprising.

There is nothing due today regarding the EUR or the USD. It is a public holiday today in the U.S.A.