Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered 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 1.0822.
- 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 entry into the zone between 1.0907 and 1.0920, or following the next touch of 1.0950.
- 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 remains one of the more attractive currency pairs to trade, as the fall continued for another day, but at a slower pace, with volatility beginning to contract. The next key support has not been approached, but the minor support around 1.0860 has weakly held the price up a little. There is still room for a further fall and trading is quite active. The price might be affected to some extent by news from the Bank of England later today, should it cause a movement in the British Pound which could then drag the Euro along in its wake to some extent.
The longer-term trends in this pair are mixed, but the short-term outlook is certainly bearish.
There is nothing scheduled concerning the EUR. Regarding the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time.