Yesterday’s signals produced an excellent, profitable short trade following the bearish engulfing candle rejecting the resistance level at 1.1837 just after London opened. If the price does not fall any further over the next few hours, it would probably make sense to take profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered until 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.
- 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 1.1837.
- 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
There is still a long-term bullish trend which is likely to resume eventually, but for the past two weeks we have seen the price break below supportive trend lines and largely fail to make any significant new high prices. I still believe that the 1.1700 area will hold as support until tomorrow’s FOMC release. It should also be noted that the Euro is holding up better than any other currency against the recent strength in the U.S. Dollar. It looks as if more bullish sentiment on the U.S. Dollar today could push the price down further to 1.1723, although the price is on a supportive trend line which may provide a bottom.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.