Yesterday’s signals were not triggered as none of the key levels were ever reached.
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 the nearest supportive trend line at about 1.1750, or at 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 1.2000.
- 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
This pair is enjoying the kind of strong trend which traders dream about, the kind where it is possible to go long on every major swing against the trend and make money almost every time. Although the price yesterday fell without making a new 2.5-year high, the strong bullish trend and price channel are both clear and intact. At the time of writing, it looks poised for another upwards move to a new high price today. The substance of the move may depend upon the content of the ADP forecast which will be released later after New York opens.
I do not see any reliable resistance until the large round number at 1.2000, although the upper trend line of the channel currently sitting at about 1.1881 might halt any advance, at least for a while.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed by Crude Oil Inventories at 3pm.