Yesterday’s signals may have produced a short trade following a bearish doji at the high within the reversal zone identified in yesterday’s signals. The trade would still be open.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may be taken before 5pm London time today only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0825 or 1.0865.
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 has quite a lot of bullish momentum and the longer-term charts are suggesting further price rises. The price is above its level of 3 months ago, which is usually a sign of the prevailing direction with this pair.
However, the price is currently testing the area above 1.0800 which has been very pivotal during recent months, so it would not be surprising if there were a major bearish reversal somewhere between 1.0800 and 1.0875: a spike up before a sudden fall could see key resistance levels temporarily breached but ultimately holding. I see the resistance at 1.0825 as very important today as it is confluent with the upper trend line of the bullish channel which the price is well established within.
This suggests it makes best sense to be short-term bullish, but to also be very watchful for a bearish turn.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Crude Oil Inventories at 2:30pm London time.