Yesterday’s signals were not triggered as the bearish price action took place a little way above the resistance level identified at 1.1250.
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 1.1146.
- 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 1.1295.
- 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 again to new multi-month highs yesterday, following comments from the German Prime Minister Angela Merkel that the Euro is undervalued. The rise has faltered at the resistance level identified at the psychological number of 1.1250, but the action still looks reasonably bullish and still higher prices are quite possible today. Alternatively, 1.1250 could be too much of a barrier and the price might make a deeper pullback. As the level at 1.1250 has already been muddied, I would look now to 1.1295 as cleaner possible resistance.
There is a long-term strongly bullish trend and I maintain a bullish bias.
There is nothing due regarding the USD. Concerning the EUR, there will be a release of German IFO Business Climate data at 9am London time.