By: DailyForex
Yesterday’s signals were not triggered, as the bearish price action took place a few pips above the resistance level identified at 1.1883.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today.
Short Trades
- Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1898 or the bearish trend line shown in the price chart below, which is currently sitting at about 1.1918.
- Place 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.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
- Long entry following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1817, 1.1814, or 1.1794.
- Place 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.
- Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
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 wrote yesterday that I again had a bearish bias, the price has essentially gone nowhere since then. Both the GBP/USD and EUR/USD are refusing to continue in a bearish direction, but the GBP has been stronger than the EUR. Here, we see the price still below the trend line and the resistance level in play, but there are initial signs of a bullish “Quasimodo” / over and under pattern basing at about 1.1840. These factors suggest that a move up is possible today, but that any such bullish move will be stronger in the GBP/USD currency pair. However, the picture is further complicated by the fact that the Bank of England will be making its major policy announcement later. There is also key U.S. inflation data due, so there could be surprising movements and higher than usual volatility. All that can be said with confidence is that the trend is bearish, so any downwards push that may result is likely to be strong.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of CPI data at 1:30pm London time.