Yesterday’s signals produced a losing long trade following the bullish pin bar rejecting the support level identified at 1.0544.
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 1.0525.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0551, 1.0561 or 1.0581.
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
Yesterday the current downwards move was still arguably looking like a bullish flag, but as the price has continued to gently descend it looks more like steady weakness, in line with the long-term bearish trend and renewed strength in the U.S. Dollar.
The price is quite likely to become more volatile later today as the ECB give their monthly input, which should affect the Euro.
The price is now close to an area which has been an effective floor recently – the 1.0500 area, so a bullish turn here on more hawkish than expected talk from the ECB could be a key event.Concerning the EUR, the ECB will release its Minimum Bid Rate at 12:45pm London time, followed 45 minutes later by the usual press conference. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.