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Forex pairs in this Article » EUR/USD
By: DailyForex.com

EUR/USD Signal Update



Yesterday’s signals were not triggered and expired. The price did reach 1.3642 but closed above it the very next hour, invalidating the trade.

Today’s EUR/USD Signals

Risk 0.50%.

Entry should be made before 5pm London time today only.

Long Trade 1

Enter long with a stop buy order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3643. The trade is invalidated once an hourly bar closes below 1.3643.

Stop loss at the local swing low.

Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 75% of the position as profit at 1.3690.

Short Trade 1

Enter short with a stop sell order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.3738. The trade is invalidated once an hourly bar closes above this level.

Stop loss at the local swing high.

Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 50% of the position as profit at 1.3655.

EUR/USD Analysis

As expected, yesterday was very quiet, but a significant technical development occurred: the price broke up past the upper trend line of the bearish channel. I mentioned this was likely to happen yesterday. We are therefore no longer in a downwards trend. The longer-term picture shows we are in a period of relative consolidation, but the continuation of upwards movement and this breakout indicates a continuation of the bullish movement.

The immediate opportunity to go long will come at a retest of the broken bearish trend line. Ideally, this is today confluent with the broken resistance at 1.3643 which may now turn into support. Above us there is resistance that previous acted as support at 1.3738, and this level could provide an opportunity for a successful short trade.

There should be more potential long than short now, but as the pair is in a fairly ranging state and is only fluctuating about 0.5% in value during a typical day, it should be quite possible to go short too.

EURUSD Signal 21114

I am pretty much in agreement with Christopher Lewis’ assessment: there is a long bias, but this pair doesn’t really have the momentum to be a good pair to trade these days. Chris suggests trading the EUR/JPY instead, and I would urge traders to try to trade pairs that have greater recent volatility than the EUR/USD.

There is no important news due today for the EUR . Concerning the USD, the new Chair of the Federal Reserve is speaking today at 3pm London time, at the same time as the JOLT Jobs Openings data is released. It is likely to be a quiet morning, followed by a more active New York session from about 2:30pm London time.

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