Yesterday’s signals produced a losing long trade following the bullish pin candle rejecting the support level identified at 1.0529, although the level was broadly correct as support.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0525.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0667.
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
I wrote yesterday that as the price was approaching the 1.0500 area we could expect to find some support there, starting at about 1.0529. This was correct with the price rebounding about 60 pips from its low above 1.0500, but the pair then fell again with renewed strength across the board in the U.S. Dollar, and the support level at 1.0525 is again being tested at the time of writing.
It is starting to look as if 1.0525 will break down and the question will then be whether the psychologically important round number of 1.0500 will hold. If it does break down, that will be a very bearish sign.
This pair is in a long-term bearish trend driven mostly by a bullish USD.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release Unemployment Claims data at 1:30pm London time.