EUR/USD Signal Update
Yesterday’s signals were not triggered as the price did not reach 1.1173 until the Asian session.
Today’s EUR/USD Signals
Risk 0.75%
Trades may only be entered between 8am and 5pm London time today.
Long Trades
-
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1068 or 1.1035.
-
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.
-
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
-
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1234, 1.1258 or 1.1288.
-
Place the stop loss 1 pip above the local swing low.
-
Move 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
I wrote yesterday that the area between 1.1150 and 1.1068 can be expected to be very crucial support, so it would not be a big surprise if this pair starts to recover here. We have had a move up from this area.
The price is right now at the time of writing at a critical level, bumping up against a long term trend line which is about one month old, as well as a shorter term trend line which has acted as resistance. Clearing the long-term line would be a major trend line break. However as there is still some time to go before the London open I cannot really talk about how to trade this. Once things settle after the London open, the position of the price relative to the trend line should be taken into account.
Above this trend line, there are several key resistance levels, all below 1.1300. This will probably be a formidable obstacle to any bullish move.
