Yesterday’s signals could have triggered a profitable short trade from the bearish inside/outside candlestick combination rejecting the resistance level at 1.1209. It would only have made about 20 pips so far and may not be likely to fall any further over the short term as the area is supported by a bullish trend line, as shown in the chart below.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1139.
- 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 1.1209.
- 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
There has been no change to the technical picture: the short-term supportive trend line remains intact, as does the key resistance level at 1.1209, although the resistance is looking slightly weaker. A sustained break above 1.1209 will be a bullish sign that the topping out below key long-term resistance at 1.1300 may be false. The longer-term picture is looking less bearish. Alternatively, a break below the short-term supportive trend line would probably see a continued movement down to 1.1139 at least.
Concerning the EUR, the President of the European Central Bank will be speaking at 9am London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm, and the Chair of the Federal Reserve will be speaking at 6pm.