Yesterday’s signals were not triggered, as there was no bearish price action when the price reached either 1.2292 or 1.2347.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2359, 1.2385, or 1.2435.
Put the stop loss 1 pip above the local swing high.
Adjust 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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2292.
Put the stop loss 1 pip below the local swing low.
Adjust 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.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
EUR/USD Analysis
I noted yesterday that the Euro as a currency was relatively weak, and that the level at 1.2252 would logically be a pivotal level. I also thought that it was likely to be a relatively quiet trading session, so any key level reached would probably hold. I was right about 1.2252 as the price got close to that level when it made the low of the day, but wrong about resistance holding. What happened is that the British Pound got a boost from news that the U.K. and E.U. had agreed a transition deal, and the Euro was dragged up by the rising Pound. Strong movements in either the Euro or the Pound usually cause a similar reaction in the other currency. The rise was stronger in the Pound, and the advance here was halted by a new resistant inflection at 1.2359.
This pair is in a long-term bullish trend, but the medium and short-term trends are still relatively neutral, so I have a cautiously bullish bias on this pair today.
There is nothing due today concerning either the EUR or the USD.