EUR/USD Forex Signal - August 11, 2016

EUR/USD Signal Update

Yesterday’s signals produced a short trade off the bearish reversal at the resistance level of 1.1188. It would be wise to take profit immediately as it has weak potential.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Long Trades

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1155 or 1.1120.

• 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 1.1188 or 1.1234.

• 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

Yesterday saw a continued strong rise with the price breaking up above resistance, before forming a double top at the next resistance level of 1.1188. So far this has held but it looks relatively weak, and the daily chart shows something of a medium-term bullish trend, although the long-term trend is downwards. However, it might be that the price falls significantly from here, or we might see a triple top form during today’s London session, which could be a really good shorting opportunity.

(Click on image to enlarge)

There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.