Yesterday’s signals produced a losing long trade following the doji candle rejecting the support level at 1.0600.
Today’s EUR/USD Signals
Risk 0.50%.
Trades may only be taken before 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0641 and 1.0630.
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.
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 been boosted by the fall in the U.S. Dollar, but it should be noted that the rise in the Euro was less than it was in many other currencies. The pair is not in a long-term trend. However, the base below looks very solid, with the rise supported by a key long-term bullish trend line as well as by a short-term one, as can be seen in the chart below.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time, followed by Preliminary UoM Consumer Sentiment number at 3pm.