EUR/USD Forex Signal - September 21, 2016

EUR/USD Signal Update

Yesterday’s signals triggered a nicely profitable short trade following the bearish pin candle rejecting the identified resistance level at 1.1204. It would be a good idea to exit the trade by now as the FOMC releases are approaching and anything might happen.

Today’s EUR/USD Signals

Risk 0.75%.

Trades may only be taken between 8am and 5pm London time today.

Make sure trades are protected by 6:30pm at the latest.

Long Trade 1

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1120.

• 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.

• 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 Trade 1

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1150.

• Put the stop loss 1 pip above the local swing high.

• Adjust 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

Yesterday saw a bullish pull back to make a peak high with a textbook bearish pin candle rejecting the identified resistance level at 1.1204. Since then, the price has fallen off steadily and at the time of writing is just a few pips above a key support level at 1.1120 having already broken through another level of potential support a little way above that.

Normally I would see everything as nicely bearish, but as the FOMC releases approach the price will most probably consolidate and might then be knocked anywhere.

For this reason, I only give short-term trades with small opportunities today.

 

There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by all the FOMC releases at 7pm and the usual press conference.