Yesterday’s signals were not triggered as there was no bearish price action at 1.0950.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0950 or an entry into the zone between 1.0918 and 1.0907.
- 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 1.1000 or 1.1065.
- 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
I wrote yesterday that this pair looked set to continue rising over the short-term to challenge 1.0950 at least. Above that, there is strong resistance at both the long-term bearish trend line (currently sitting at about 1.0980) and of course the big round number at 1.1000.
The price rose strongly again yesterday, powering past the anticipated resistance at 1.0950, but has been held overnight just under 1.1000. The price action is slightly suggestive of a further rise today, but the 1.1000 area is very pivotal and should be watched closely as a potential reversal zone. Should the price manage to break up above 1.1000 early in a new geographical session, this could be a very bullish of a fast rise to 1.1065.
There is nothing scheduled today concerning the EUR. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.