Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trade 1
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1723.
· 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.
· 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
Friday’s stronger than expected NFP data pushed the price down, but the pair held up relatively well, and has not broken below the lower end of its bullish channel or key low prices. This suggests that the upwards trend remains intact as the outlook on the USD has not changed deeply. What happens at the next test of 1.1818 will be very key, and this level is currently confluent with a formerly supportive channel trend line, so it could provide strong resistance. If it holds, that would be a bearish sign that a deeper pull back within the bullish trend might be taking place.
There is nothing due today concerning either the EUR or the USD.