EUR/USD Signal Update

Last Thursday’s signals were not triggered as none of the key levels were reached.

Today’s EUR/USD Signals

Risk 0.75%

Trades must be taken 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 1.0900 or the lower channel trend line currently sitting at around 1.0948.

• 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 Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1058, 1.1087 or the upper channel trend line currently sitting at around 1.1028.

• 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

This pair is in a more interesting technical position now, having become established in a bearish channel as shown in the chart below. Additionally, a new potential resistance level sits not far above the current price, but I would not be looking for a short here just yet as it is too close to the current price as at the time of writing. Looking to the long term, this pair seems to have a bearish trend, although it really needs to break below the strong support close to 1.0800 to become truly bearish. However there are no key support levels above 1.0900 so the path of least resistance looks to be downwards.

(Click on image to enlarge)

Concerning the EUR, there will be a release of German IFO Business Climate data at 9am London time. There is nothing due regarding the USD.