Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0529.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 chart below shows that the price made a double top at 1.0630 before falling strongly, boosted by the strengthening USD after two members of the FOMC made public comments supportive of a further rate hike to be imposed this month. The price is now approaching the 1.0500 area and we can expect to find some support there, starting at about 1.0529. If the price does break below 1.0500 convincingly, that would be a very bearish sign.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, followed by Crude Oil Inventories at 3:30pm.