Yesterday’s signals produced a long trade just after the London open which made the minimum 20 pips of profit following the bullish pin candle rejecting the identified support level at 1.1723. This would have been stopped out by now at break even.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Protect any open trade by 6:30pm.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1650 or 1.1615.
- 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 1.1769 or 1.1837.
- 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
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 thought yesterday that the 1.1700 area would hold as support until tomorrow’s FOMC release. This is what has happened, yet recent price action has painted a more bearish picture, with the price now clearly within a wide bearish channel and new resistance above at 1.1769. However, the Euro remains relatively strong, so if the FOMC release due later is bad for the Dollar, we can expect a meaningful rise in this pair, while the downside if the opposite happens may be more limited.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and FOMC Meeting Minutes at 7pm.