EUR/USD Forex Signal - April 6, 2016

EUR/USD Signal Update

Yesterday’s signals produced a profitable long trade off the rejection of support at 1.1337 that was good for slightly more than 20 pips of profit.

Today’s EUR/USD Signals

Risk 0.50%

Trades may only be entered between 8am and 5pm London time today.

Protect any open trades half an hour before the FOMC release.

Long Trade 1

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1337.

Place the stop loss 1 pip below the local swing low.

Move the stop loss to break even once the trade is 20 pips in profit.

Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trade 2

Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1302.

Place the stop loss 1 pip below the local swing low.

Move the stop loss to break even once the trade is 20 pips in profit.

Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Short Trade 1

Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1400.

Place the stop loss 1 pip above the local swing high.

Move the stop loss to break even once the trade is 20 pips in profit.

Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

EUR/USD Analysis

I wrote yesterday that the price would probably be limited by 1.1337 and 1.1400 and these levels in fact provided the high and low of the day almost to the pip! As expected, it was hard to take trades off either level as there wasn’t much room for the price to move. In any case, there was a long trade that was good for 20 or so pips, and it was possible to scalp off 1.1400 late in the New York session.

It will probably be a quiet day ahead of the FOMC release due later, so these levels are very likely to hold the price until we get close to that time, after London closes.