Forex Signals: Technical Outlook For EUR/USD
PipHut | Jul 16, 2013 05:13AM ET
Our commentary how false breaks increase the reward/risk ratio seems a bit prescient after we werehit with two false breaks yesterday, on EUR and AUD. If not for those breaks, the AU would have hit an SL for -50 pips and the EUR would be floating around break right now. Instead we ended up with just over 11 pips in losses. Not our preferred outcome - but certainly better than the alternatives.
Yesterday’s EUR/USD Signal Result: Our EUR long was triggered on the 1.3075 resistance break yesterday, but was unable to find enough bullish traction to sustain the break, leaving us to close out on the false break alert for a 6.4 pip loss.
Today’s Signal: The technical outlook is muddy at best right now. We have a June high above 1.3402, a July low of 1.2754 and current price is smack-dab in the middle at 1.3068. Bulls have shown more strength in the short-term, and that was the reason we played our long yesterday. But the absolute lack of follow through is concerning. We will stay flat for today, and wait for a clearer technical picture to emerge on this pair. Heads up for scalpers - there is plenty of room to scalp between current price and the bottom support to this ascending wedge around 1.30.
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