Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1164, 1.1146 or 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
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1250.
- 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
This pair has fallen from at the resistance level identified at the psychological number of 1.1250, and the drop looks strong enough to suggest the price will fall further, almost certainly into the supportive zone nearby. After such a long bullish move consisting of hundreds of pips, a deep pull back is natural and does not suggest the end of the bullish trend.
There is a long-term strongly bullish trend and I maintain a bullish bias. However, there is key U.S. data due later which may surprise the market and lead to a sharp move in the price of this instrument in any direction.
Concerning the EUR, the President of the ECB will be speaking at a conference at 1:45pm London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm followed by the FOMC Meeting Minutes at 7pm.