EUR/USD Signal Update

Yesterday’s signal was not triggered as the price never reached 1.1893.

Today’s EUR/USD Signals

Short Trade 1

• Go short after bearish price action on the H1 time frame immediately following the next touch of 1.1893.

• 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 trade is 20 pips in profit and leave the remainder of the position to ride.

EUR/USD Analysis

As expected, yesterday was a fairly quiet day for this pair, and today will probably be the same. The price tumbled to hit a level close to local support at 1.1780, before rising relatively sharply to end up more or less back where it started this week. This shows we have had a certain degree of buying with higher lows, giving credence to the case that it is time for a bullish pull back. However, I am reluctant to look for a long in such a strong bearish trend and at such a low price, even though the overall odds in the event of a trend reversal could make this, statistically, a good trade.

The likely resistance I had identified overhead at 1.1893 has not yet been reached, and if this level is hit today and then followed by bearish price action, I would look for a short there and a resumption of the downwards trend.

There might well be support close to 1.1750 but I would not look for a long trade there.

My colleague Christopher Lewis is bullish between 1.1800 and 1.2000.

There are no high-impact data releases scheduled today concerning either the EUR or the USD. It is likely to be a relatively quiet day today for this currency pair.