Yesterday’s signals were not triggered as there was no bullish price action at 1.0817.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Long Trades
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0747 or 1.0712.
* Place the stop loss 1 pip below the local swing low.
* 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.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0822.
* 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
This pair fell strongly yesterday after positive U.S. economic data boosted the greenback. A new resistance level has been printed at 1.0822. It had looked as if the price had broken up above very key resistance but it may have been a false break, although it is still too early to tell. Below, the price is about to test an old but possibly still valid trend line. I suspect the price will continue down to at least 1.0750 over the next few days. The long-term trend is bullish.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Crude Oil Inventories data at 2:30pm London time.