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

EUR/USD Signal Update



Yesterday’s long signal was triggered by a pin bar opening and closing within the top third of its range at 3pm GMT. The price just barely made 25 pips of profit, meeting resistance at around the 1.3680 level, before falling sharply and returning to the entry point, breaking even.

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 1.3551. The trade is invalidated once an hourly bar closes below 1.3550.

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 1.3620.

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

Yesterday saw a small move up, but all the pushes up stalled at 1.3680. The price fell after the Fed statement, and has not returned back below the broken upper trend line of the previous bearish channel. This suggests we are now going into a sluggish, ranging period, where directional movement is going to be difficult to predict. I do not see any reliable support or resistance levels for about 100 pips in either direction of the current price. I agree with Christopher Lewis’s assessment that this pair simply has no clear directional impetus at the moment, although we both tilt weakly towards bullishness.

The daily chart printed a bearish pin bar, suggesting a move down today to some extent.

The H4 chart below shows the bigger picture looking more bullish, or at least ranging, and the used-up upper trend line of the former bearish channel:

EURUSD Signal 21214

There is no important news due today for the USD. Concerning the EUR, the President of the ECB is speaking today at 3:30pm London time. It is likely to be a quiet morning, followed by a more active New York session from about 3pm London time. Should the ECB surprise the market by announcing the beginning of an Asset Purchase program, the market should move sharply.

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