EUR/USD Signal Update

Yesterday’s signals expired without being triggered as there was no bullish price action at 1.0684.

Today’s EUR/USD Signals

Risk 0.75%

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

Long Trade 1

* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0550.

* 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 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 next touch of 1.0800.

* 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

Even in the absence of major news yesterday, and in advance of important news today, the price broke down past previous support at 1.0684.

This is a very bearish sign and if the data due later today supports this bearish scenario, especially on the USD side, we could see a very strong move down. We are already making multi-month lows.

I see new resistance above at around 1.0690 which is confluent with this week’s opening price.

Any trend lines currently above 1.0550 are ambiguous so I prefer to focus on 1.0550 as the closest possible support.

Regarding the EUR, there will be a release of German ZEW Economic Sentiment data at 10am London time. Concerning the USD, there will be a release of CPI data at 1:30pm.