EUR/USD Signal Update
Last Thursday’s signals were not triggered as the price action was beyond the respective levels.
Today’s EUR/USD Signals
Trades may only be entered 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 1.1068.
* 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 ride.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1217.
* Place the stop loss 1 pip above the local swing high.
* Move the stop loss to break even once the trade is 25 pips in profit.
* Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
Last Thursday’s ECB announcement produced a sudden sharp move down below the support at 1.0900 which then reversed very strongly, and this move ended up making a new high more than 300 pips higher, at 1.1217. Although the price fell off from there, it has more or less held up.
It is important to look at the bigger picture. Over the past few months, the trend has been upwards, there is no question about that. However for about ten months now, the price has not been able to remain above the 1.1400 area for very long, and this has effectively acted as a cap upon the price.
What this means is that long trades up to 1.1400 are likely to have a higher probability, but bear in mind that although the USD is falling, this pair is not yet making really significant new highs, so trades can be taken in both directions off key support or resistance levels, especially when it looks overbought or oversold.