Yesterday’s signals were not triggered, as there was no bearish price action at 1.2000 over a sufficiently short time frame.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of the broken bearish trend line currently sitting at about 1.1923.
- 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.
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
Yesterday saw the price rise very strongly to a new 2.5 year high well above the psychologically key 1.2000 level, but the price has fallen back to the origin of the last bullish wave very quickly, giving up its gain and ending up back below 1.2000. On a daily price chart, this means a bearish pin candle has formed rejecting 1.2000. Although conditions are still fundamentally bullish, the pair seems open to a sharp downwards movement. Much will depend upon the cycle of key U.S. economic data which begins today and runs through to the real Non-Farm Payrolls data release on Friday.
The most logical opportunity to enter long would be at a retest of the broken trend line, although 1.1950 above that also looks as if it might provide support..jpg "EURUSD")
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 Preliminary GDP data 15 minutes later, and then finally Crude Oil Inventories numbers at 3:30pm.