Yesterday’s signals may have triggered a long trade following the bullish engulfing candle rejecting the support level identified at 1.1723. This trade is still in play.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trades
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1723 or 1.1650.
· 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
· Go short 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 pair has continued to fall, behaving very technically, with the resistance at 1.1818 holding, yet the support at 1.1723 has held so far too. The U.S. Dollar has gained ground over recent hours, due partly to tensions over North Korea, and although the Euro has fallen against it like everything else, it has recently been holding up relatively well.
Everything will now depend upon the 1.1723 level: if it continues to hold, the price should eventually recover, with a break above the bearish trend line in the chart being a key indicator of any bullishness. However, if 1.1723 breaks down, that will be a bearish sign.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.