Yesterday’s signals were not triggered as there was no bearish price action at 1.1065.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1065.
- Put the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1139.
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 “should the price manage to break up above 1.1000 early in a new geographical session, this could see a very bullish fast rise to 1.1065.” This is exactly what happened. This pair was at the heart of the market, with the Euro the most strongly bullish and the USD the most strongly bearish of all the major currencies. The price is making new 6 month highs. I would be very careful of taking any short trades today unless the price spends several hours turning around. The bullish momentum has been confirmed by the basing at the former resistance level of 1.1065, which is now support, and by the fact that the price is still trading above the next round number of 1.1100
There is nothing scheduled today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.