EUR/USD Daily Analysis: The euro barely moved last week, instead consolidating into a tightening pennant triangle on the 4h charts which is matched by a triangle on the RSI. This consolidation most likely will lead to a breakout, and the shape of the long-term trend still leads us to believe that the up is the likely direction, but neither direction leaves us with a particularly good risk/reward ratio as long as price hovers in the middle of its pennant pattern.
Our Preferred Trades*: There should be plenty of scalping to be had above 1.3795 and below 1.3835 (the pennant boundaries), but beyond that we will remain flat today until we have more evidence of the hourly trend. A break below 1.3780 would signal a short-term top has been formed at 1.39 and open up 1.3750 and 1.3660, while a break above 1.3860 would open up another challenge of 1.40.
Yesterday’s EUR/USD SwingPRO Signal Result: We closed our long from 1.3825 before the weekend hit for a 6 pip loss.
Today’s SwingPRO Signal: Standing aside for today.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
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