EUR/USD Signal Update

Yesterday’s signals were not triggered and expired as the price never reached either 1.3538 or 1.3687.

Today’s EUR/USD Signals

• Risk 0.75% equity.

• Entries only before 5pm London time today.

Long Trade 1

• Long entry at the first touch of the bullish trend line currently sitting at about 1.3539.

• Put a stop loss at 1.3490.

• Adjust the stop loss to break even when the price reaches 1.3570.

• Remove 25% of the position as profit at 1.3570 and leave the remainder of the position to run.

Short Trade 1

• Short entry following bearish price action on the H1 time frame after the first touch of 1.3687.

• Put a stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even when the price reaches 1.3630.

• Remove 75% of the position as profit at 1.3630 and leave the remainder of the position to run.

EUR/USD Analysis

Yesterday I mentioned that the candlestick price action suggested a continuing upwards move and that in fact is what happened yesterday, albeit in a fairly quiet and minor way. The FOMC minutes and Draghi’s speech towards the end of yesterday’s New York session had little effect. We touched 1.3650 shortly after the Frankfurt open this morning. This level has often acted as resistance and support so there is a chance that it may have been the high of today. However the price action does suggest that we will go up to around 1.3687, at which level I will begin to look for a short trade. In the unlikely event that we fall 100 pips today during the London session, the bullish trend line which is currently at about 1.3539 should make a good long touch trade.

My colleague Christopher Lewis also sees the price right now as essentially stuck in a no-man’s land.

EUR/USD

There are no high-impact data releases scheduled for today concerning the EUR. Regarding the USD, there will be a release of US Unemployment Claims data at 1:30pm London time, which might affect the USD.

Related Articles
  1. Investing News

    Job Report Brings Fed Rate Hike Into Question

    On Friday, the U.S. Bureau of Labor Statistics released its report on employment situation in the U.S. for the month of August. According to the report, the U.S. added 173,000 jobs, falling short ...
  2. Personal Finance

    Salary Secrets: What Is Considered a Big Raise?

    A 4% or 5% annual jump in pay may not sound huge, but in today’s environment, it actually means you’re faring better than most.
  3. Retirement

    6 Steps to Update or Change Your Will

    Life changes – a new marriage, the birth of a child – can necessitate changes in your will.
  4. Insurance

    What Does It Cost To Raise a Child in America?

    Having a family can be an expensive proposition, but couples who know the numbers can strategize to lower the costs.
  5. Bonds & Fixed Income

    Calculating Yield to Worst

    Yield to worst is the lowest possible yield on a bond that may be called in the future.
  6. Economics

    What Does Vesting Mean?

    Vesting is the process of accruing non-forfeitable rights.
  7. Economics

    Understanding Retail Banking

    Retail banking refers to the mass-marketed, consumer-oriented products and services offered by the local branch of the commercial bank.
  8. Investing Basics

    Explaining Foreign Exchange Risk

    Foreign exchange risk is the chance that an investment’s value will decrease due to changes in currency exchange rates.
  9. Economics

    What Happened at the Fiscal Cliff?

    The fiscal cliff refers to a scenario on December 31, 2012, in which the Bush-era tax cuts were set to expire.
  10. Economics

    Explaining Enterprise Resource Planning

    Enterprise resource planning (ERP) is management software that integrates a business’ essential departments.
RELATED TERMS
  1. Deficit

    The amount by which a resource falls short of a mark, most often ...
  2. Letter of Intent - LOI

    A document outlining the terms of an agreement before it is finalized. ...
  3. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin ...
  4. Market

    A medium allowing buyers and sellers of a specific good or service ...
  5. Sticky Wage Theory

    An economic hypothesis theorizing that pay of employees tends ...
  6. Cost Of Funds

    The interest rate paid by financial institutions for the funds ...
RELATED FAQS
  1. Are dividends considered passive or ordinary income?

    Despite the fact that earning dividends requires no active participation on the part of the shareholder, they do not meet ... Read Full Answer >>
  2. Is dividend income taxable?

    Dividend income is taxable but it is taxed in different ways depending on whether the dividends are qualified or nonqualified. ... Read Full Answer >>
  3. How do dividends affect net asset value (NAV) in mutual funds?

    Distribution of dividends reduces the net asset value (NAV) of mutual fund shares. However, this doesn't mean that fund investors ... Read Full Answer >>
  4. Are mutual funds considered retirement accounts?

    Unlike a 401(k) or Individual Retirement Account (IRA), mutual funds are not classified as retirement accounts. Employers ... Read Full Answer >>
  5. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  6. Do mutual funds invest only in stocks?

    Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!