Yesterday’s signals were not triggered as there was insufficiently bullish price action at 1.1923.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1838 or 1.1750.
- 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 1.1961.
- 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.
- Remove 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
Despite the long-term bullish trend and strong break up above 1.2000, the bearish pin candle which formed on the daily chart rejecting that price followed through and continued to push the price down with a steady fall. Along the way, a new resistance level was printed at 1.1960. It looks as if the price is likely to reach 1.1838 next from all the key levels marked on the chart, where it may find support. The outlook on the U.S. Dollar is more bullish following yesterday’s GDP data and much will now depend upon whether this is confirmed or contradicted by Friday’s Non-Farm Payrolls data.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.