EUR/USD Signal Update

Yesterday’s signals produced a losing long trade following the pin bar rejection of the support level identified at 1.0961.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken from 8am to 5pm London time today.

Long Trades

• Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.0961 or 1.0900.

• Place 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 price reaches 20 pips in profit and leave the remainder of the position to run.

Short Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1004, 1.1027 or 1.1072.

• Place 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 run.

EUR/USD Analysis

We had a small bounce off the 1.0961 level yesterday but the price did not rise very far before falling again and at the time of writing we are experiencing another test of this level. It is looking increasingly as if it will break. We also had new support flipped to resistance just a few pips above the psychologically important level of 1.1000 and a new bearish trend line develop, all of which adds to the bearish picture.

However, we have major central bank input due later today from the ECB, so all of this means much less than usual as anything might happen. The big picture is undoubtedly bearish though.

(Click on image to enlarge)

Regarding the EUR, the ECB will be announcing the Minimum Bid Rate at 12:45pm London time, followed shortly afterwards by the usual ECB Press Conference. Concerning the USD, there will be a release of Philly Fed Manufacturing Index and Unemployment Claims data at 1:30pm.