Yesterday’s signals were not triggered as there was no bullish price action at 1.1946.
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 1.1930.
- 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
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1989 or 1.2044.
- 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
The deep pullback started to bottom out yesterday, initially at about 1.1940 but it them went a few pips lower, beyond where I had anticipated probable support. The rise has been reasonably impressive, enough to keep interest in the long-term bullish trend, but recent hours have seen the price capped by obvious resistance at 1.1989. This is going to be a key level: bulls need it to break, but the longer it holds, the more likely it is that this pair will enter a period of consolidation under 1.2000. After driving the market for a while, the Euro is taking a back seat to the British Pound and Japanese Yen.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.