Yesterday’s signals were not quite triggered as unfortunately the level at 1.1382 was missed by a pip or so at the low of the day. However, this level was highly accurate as good support.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trades
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1382 or 1.1461.
· 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
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1493.
· 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 enjoyed a strong upwards move yesterday that did not truly get going until New York came online, and made new 1-year high prices in line with the prevailing long-term bullish trend. There is every reason to be bullish about this pair and the Euro in particular. Janet Yellen will be testifying later and the content of her testimony may change sentiment on the U.S. Dollar, which would most likely have big implications for this pair. There is new support at 1.1461 but I feel the price may need to move a little lower than that, possible to .50 or .40, before making another significant upwards movement.
There is nothing due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve will be testifying before the House Financial Services Committee on monetary policy at 3pm London time, followed half an hour later by Crude Oil Inventories.