EUR/USD Signal Update

Yesterday’s signals were not triggered as there was no bullish reversal at the zone between 1.0773 and 1.0766.

Today’s EUR/USD Signals

Risk 0.75%

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

Long Trade 1

• Go long following a bullish price action reversal on the H1 time frame immediately upon the first touch of 1.0630.

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

Short Trade 1

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the first touch of 1.0809.

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

EUR/USD Analysis

I forecast yesterday that if the price was able to break through 1.0766 cleanly, the price should continue downwards towards 1.0650. There was such a clean break quite early in the London session that then produced a fairly quick fall down to an area close to 1.0700, but the price then turned around before a New York session with choppy swings both ways.

The net result is that this area has been messed around too much now to be useful as support or resistance, and the focus should now switch to the earlier support just above 1.0800. This would be a likely area for the price to turn bearish today.

There is some local support at around 1.0700 and a little below it, but the next major support should be at around 1.0630. The half number just above it at 1.0650 might also be hard to crack.

There are no high-impact events scheduled today concerning the EUR. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time. Later at 3pm there will be ISM Manufacturing PMI.