EUR/USD Signal Update

Yesterday’s signals may have produced a profitable long trade following the bullish inside candle rejecting the support level at 1.0967. It is logical to expect a major reversal here so it could be a good idea to hold onto any such trade.

Today’s EUR/USD Signals

Risk 0.75%

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

Long Trade 1

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0967 and 1.0900.

* 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 run.

Short Trade 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1080.

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

* Adjust the stop loss to break even once the trade is 25 pips in profit.

* Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

For some time this pair has been falling towards the zone from 1.1000 to 1.0900 which was previously strong resistance which has not been retested since the bullish breakout above 1.1000 that occurred some time ago. Yesterday the price kept falling until it hit the key level of 1.0967 at which is rose with some momentum. It might well keep going from here. A good test of how bullish this pair really is will be whether it reaches 1.1080 fairly soon and how the price reacts at that level.

There is nothing due today concerning the EUR. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims at 1:30pm London time.