Yesterday’s signals were not triggered as neither of the key levels were reached during the session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 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 1.0648.
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 1.0740.
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 more dovish than expected stance on inflation by the FOMC yesterday saw the Dollar drop across the board. This pair was no exception but the Euro was far from the biggest gainer, despite the EU-positive Dutch election result becoming known at about the same time. The chart below shows a bullish structure that has a deep pull back type rhythm typical for this pair. The price is above where it was 3 months ago, but above its price from 6 months ago, suggesting a wider consolidative pattern.
There is nothing due today regarding the EUR. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 12:30pm London time.