Yesterday’s signals were not triggered as there was no bullish price action at 1.0950, and the bullish price action at 1.0920 occurred after 5pm London time.
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 1.0920 or 1.0881.
- 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 1.0950 or 1.1000.
- 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 resistance level at 1.1000 is very important, and it not only held but the weekly open just above it has produced a reasonably strong sell-off. Although this pair has a medium-term bullish trend, the immediate aftermath of the French Presidential Election may have already seen “peak Euro” as a classic case of “buy the rumour, sell the fact”. The immediate relief of the market seems to now be giving way to a recognition that the new President faces a great challenge in keeping France at the heart of the European consensus.
It would not be surprising if we do not see a higher price than the weekly open for several months, possibly even years, and there would have been some long-term selling up there. Adding to the bearish case is the fact that the support at 1.0950 has flipped to become resistance.
There is nothing due today concerning either the EUR or the USD.