Yesterday’s signals were not triggered as there was no bearish price action at 1.0712.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
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 Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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
This pair rose quite strongly, but it was really all due to the sharp rise in the British Pound bringing the Euro along in its wake. The result was a break up above a consolidating triangle and the flipping of resistance at 1.0712 to probable support. The price is now close to a very crucial level at 1.0746 which is confluent with the psychologically important number of 1.0750. This area may now act as strong resistance. There is still no long-term trend, with the price up on 3 months but down over 6 months, so successful trades in either direction are quite possible.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.