Yesterday’s signals were not triggered as there was no bullish price action at 1.1534.
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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1534 or 1.1615.
- 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
Yesterday this pair fell below the support level at 1.1534 which has begun to act as resistance. However, the price has not managed to get below the round number at 1.1500 and is consolidating within that narrow area. The European Central Bank will give a rate release and press conference later. Until then the price should consolidate within this zone, but during the release there should be some volatility and very unpredictable price movement. A long trade from a bullish rejection of 1.1493 is likely to be the best trade scenario which might occur.
Concerning the EUR, the European Central Bank will release its Minimum Bid Rate followed by the usual press conference at 12:45pm London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.