EUR/USD Signal Update
Last Thursday’s signal to scalp off the trend line may have been taken as the price did reach the trend line, making a low of 1.1332 before rising by about 110 pips.
Today’s EUR/USD Signals
Risk 0.75%
Trades must be taken before 5pm London time only.
Short Trade 1
Go short following some bearish price action on the H1 time frame immediately upon the first touch of 1.1532.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.
EUR/USD Analysis
There was a bullish trend line that was underlining the recent move up and this line held until Friday when it broke down. Although the price then moved up with the news of the Greek / Euro deal, this trend line is gone and has to be deleted. What we are left with is a narrowing triangle and a longer-term bearish trend line above that has been holding quite nicely. This means local resistance at the 1.1400 – 1.1450 zone and local support at around or just below the 1.1300 level. These trend lines might be useful to scalp off, but as the sentiment around the Euro is likely to fluctuate from rumour to rumour and day to day, it is really important to be very careful when taking any short-term trades in Euro pairs or crosses such as this one.
The strong resistance level above remains at around 1.1532, which is some distance away.
If the price breaks strongly below 1.1250, there should be a strong move down that would be likely to equal or even exceed the previous low at around 1.1100.
Regarding the EUR, at 9am London time there will be a release of German IFO Business Climate data. There is nothing due concerning the USD.
