Yesterday’s signals produced a losing long trade following the bullish break of an inside candle rejecting the support level identified at 1.0627.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Protect all open trades by 5:30pm.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0600.
* 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 touch of 1.0648.
* Place the stop loss 1 pip above the local swing high.
* Move 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 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
There has been a relatively sharp bullish turn at the round number of 1.0600 which could be supportive again. Over the medium-term the bulls have the upper hand, but the price is quite consolidative and the next movement difficult to predict.
There is nothing due today regarding the EUR. Concerning the USD, there will a release of CPI and Retail Sales data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm and the FOMC Statement, Economic Projections and Federal Funds Rate at 6pm, and then the usual press conference half an hour later.