Yesterday’s signals were not triggered as the price did not reach either of the key levels during the specified session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1838.
- 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 1.1989.
- 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
A day ago, this pair looked to be lacking any direction, despite the clear long-term bullish trend. During the day, the price held above 1.1900, and has risen to make new highs during the Asian session. At the time of writing, the price is testing the key resistance level at 1.1989.
It is possible there will not be any major movement in the U.S. Dollar ahead of tomorrow’s key FOMC release. However, this does happen sometimes and cannot be ruled out, so it is still worth trading this pair today if it moves right. There are two scenarios to watch for: either the pair cannot break above 1.1989 as London opens and starts to fall strongly, setting up a potential short trade entry, or the pair breaks out above 1.1989 and begins to rise forcefully, setting up a potential long trade entry.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Building Permits at 1:30pm London time.