Yesterday’s signals were not triggered as there was insufficiently bullish price action at 1.1723.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trades
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1723 or 1.1650.
· 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
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1818.
· 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
The previous day has seen a continuing story of “safe-haven” currencies strengthening and everything else weakening, with the U.S. Dollar included within the safe-haven currencies. However, the Euro also continues to hold up better against a resurgent dollar than most other currencies, which is a sign that the Euro still has underlying strength, and that when the Dollar starts selling off again, the Euro will be likely to be one of the major beneficiaries. The support at 1.1723 is still holding, but if it breaks, we should see a sharp fall to at least 1.1650 as a lot of stops would probably be triggered.
There is nothing due today concerning the EUR. Regarding the USD, there will be releases of PPI and Unemployment Claims data at 1:30pm London time.