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By: DailyForex.com

EUR/USD Signal Update



Last Thursday’s signals were not triggered and expired. The price did reach 1.3648, but after some hesitation blasted upwards right through it, proving it was sensible to wait for price action confirmation in this case. Last Wednesday my colleague Christopher Lewis recommended buying at a breakout of 1.3558 and taking profit at 1.3650, which was an excellent call.

Today’s EUR/USD Signal

Risk 0.50%.

Entry should be made between 8am and 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 1.3648.

Stop loss at the local swing low, if that can be just below the S2 pivot it would be perfect

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 1.3700 and move the stop to break even.

EUR/USD Analysis

This pair rose very strongly on Thursday, and spiked up again to breach the resistance zone at 1.3715/27, but only for an hour or so before falling back.

We broke upwards out of the narrowing bearish channel that we had been established in since late last month. We are established in a wider bullish channel that has been running since last summer, as can be seen from the daily chart below:

EURUSD Daily 12714

After such a strong breakout, and as 1.3650 has flipped frequently between support and resistance recently, it seems advisable to look for a long off a return to 1.3650, which is very confluent with today’s GMY daily S1 pivot point at 1.3644. The resistance zone above at 1.3715/27 may still be intact, but I would not be looking for a short off that level just yet.

EURUSD H1 12714

There is important news due today for both the EUR and for the USD, which might make this Monday livelier than usual. There is German IFO Business Climate at 9am London time followed by U.S. New Home Sales at 3pm.

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