Yesterday’s signals gave a profitable short trade following the bearish engulfing candle rejecting the resistance level identified at 1.0650. The trade has already collected 20 pips of profit and the stop will be at breakeven.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0565.
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 run.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0650 and 1.0667.
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 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
The steep bearish trend line is still holding the price down, and the pair even traded below the round number at 1.0600 for a few hours. There has been some quite strong buying during the Asian session and it looks as if the price is going to test the bearish trend line soon. A sustained break above 1.0650 would be significant and probably mean the end of the medium-term bearish trend, which is still technically dominant.
Concerning the EUR, there will be a release of German Preliminary GDP data at 7am London time. Regarding the USD, there will be a release of PPI data at 1:30pm followed later by the Chair of the Federal Reserve testifying before Congress at 3pm.