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 the nearest supportive trend line at about 1.1785.
- 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 1.2000.
- 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
This pair is enjoying the kind of strong trend that 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. The strong bullish trend and price channel are both clear and intact, with the channel being respected at its upper trend line yesterday as the price blew off above its new high past 1.1900. It seems likely that unless the U.S. data is extremely weak, the price will not make a new high today here, but either consolidate or pull back and await the big NFP number tomorrow. A deeper pull back could produce an opportunity to enter long at the lower boundary of the channel, which is currently confluent with a recent inflective swing low at 1.1785.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims at 1:30pm London time followed by ISM Non-Manufacturing PMI data at 3pm.