Yesterday’s signals were not triggered as there was no bearish price action at 1.1139.
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 1.1146 or 1.1065.
- 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 1.1250.
- 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 “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.” The price rose quite strongly for another day, although not as strongly as it rose on Tuesday. It still looks bullish, flipping resistance to support at 1.1065 and printing new support at 1.1146. There are initial signs that a consolidation may be beginning, but provided the price remains above 1.1146 the outlook remains very bullish over the short-term.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Concerning the EUR, the President of the ECB will be speaking at 6pm.