EUR/USD Signal Update

Last Thursday’s signals produced a small but profitable short trade off the resistance level at 1.0940.

Today’s EUR/USD Signals

Risk 0.75%

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

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0800.

* Put 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 ride.

Long Trade 2

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0772.

* Put 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 ride.

Short Trade 1

* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1000.

* Put 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 ride.

EUR/USD Analysis

I was right on Thursday that the level at 1.0940 would act as resistance. It was broken to the upside later right at the end of the week, but the area at around 1.1000 is still holding OK.

The chart below shows we are in a fairly fat ascending wedge pattern. Either of the trend lines might hold and the longer the lower trend line holds, the stronger any eventual break down will probably be. I prefer to wait for resistance at 1.1000 before looking for a short or support at 1.0800 before looking for a long trade.

The best way to trade this pair is for short-term gains at turns close to the major support and resistance levels.