Yesterday’s signals were not triggered as there was insufficiently bullish price action at 1.0747, although the level has acted as good support.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0712.
* 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 1.0822.
* 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 support level at 1.0747 is holding despite the deep pull back within the long-term bullish trend. This level is confluent with a psychological number at 1.0750. These factors and recent price action as we approach the London open suggest that the price is more likely to move up today than down, but such a move needs to become stronger quickly to be convincing. We already have a short-term double bottom at 1.0747, therefore I would not want to use this level as support again today if it is reached, looking instead of 1.0712.
The broken trend line above may provide resistance, especially when it becomes confluent with the resistance level at 1.0822.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Final GDP and Unemployment Claims data at 12:30pm London time.