Yesterday’s signals provided a losing long trade following the bullish engulfing formation rejecting the support at 1.0648, although the level did in the end act as good support and there were further opportunities for long trade entries.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Protect all open trades by 6:30pm.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0600.
* 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 1.0712 or 1.0746.
* 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
It looks as if the price has bottomed out close to the support level of 1.0648, albeit not very convincingly.
The price is still above its level of 3 months back, although it has fallen strongly over recent days, so it is a difficult pair to forecast now. The support level at 1.0600 also looks attractive, as it is becoming confluent with a long-term supportive trend line.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed at 3pm by ISM Non-Manufacturing PMI and Crude Oil Inventories half an hour later. Finally, and most importantly, there will be a release of the FOMC Meeting Minutes at 7pm.