EUR/USD Signal Update

Yesterday’s signals gave a short trade after a low break of an engulfing bar following the first test of the trend line at 1.1000. The trade is currently carrying a floating loss but is still open, with a stop at approximately 1.1015.

Today’s EUR/USD Signals

Risk 0.75%

Trades may only be entered before 5pm London time.

Long Trade 1

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the first test of 1.0881.
• 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.
• Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

Short Trade 1

• If you are not already in a short trade, then as long as the price has not yet reached 1.1015, it is possible to get involved short anywhere above 1.0953.
• Place the stop loss at 1.1015.
• Move the stop loss to break even once the price remains below 1.0881 for at least 2 hours.
• Remove 50% of the position as profit at 1.0881 and leave the remainder of the position to run.

EUR/USD Analysis

It had been looking as if this pair reversed significantly at the trend line at around the key psychological level at 1.1000. The reversal happened again yesterday after another re-test. However the Euro is behaving somewhat bullishly and at the time of writing is testing 1.1000 again.

If the price manages to break clearly above 1.1040, that would be a surprising and very bullish sign. It is more likely we will get some stabs up above 1.1000 this morning that are just going to be selling opportunities.

Click on picture to enlarge

There are no high-impact events scheduled today concerning the EUR. Regarding the USD, at 12:30pm London time there will be a release of U.S. Unemployment Claims data.