Yesterday’s signals were not triggered as none of the key levels were reached during the session.
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 1.1493.
- 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 1.1534.
- 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 we can still expect higher prices from this pair and that a breakout above 1.1500 would be a bullish sign. This has come to pass, with the upwards movement stalling at the key resistance level of 1.1534. A break above this level today that is sustained would be another very bullish sign, but if the price cannot stay above the level and quickly reverses from there around the London open today, it could provide a short trade entry, but any short trades should be taken with extreme caution in this strong upwards trend. I see no reason to doubt the long-term bullish trend has run its course, with the price continuing to make new 1-year highs.
There is nothing due today concerning either the EUR or the USD.