Yesterday’s signals were not triggered as there was no bearish price action at 1.1534.
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 1.1534 or 1.1493.
- 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 1.1615.
- 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
Yesterday saw this pair making a very bullish new 1-year high and breaking up past the resistance level of 1.1534. There is no doubt this pair is in a very strong upwards trend. Currently, the price looks to be making a deep pull back, on much lower volatility. This suggests the support level at 1.1534 might well be broken and we could see the price move lower than that. If the price does hold and is bought from there strongly at the London open, it could alternatively provide a good long trade entry opportunity. Yet I think that 1.1493 or perhaps the big number just ahead at 1.1500 will in the end be more effective support.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.