Yesterday’s signals were not triggered, as the bearish price action took place a little way above the resistance level identified at 1.1989.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Protect any open trade by 6:30pm.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2000 or 1.1962.
- 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 1.2044.
- 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 price has now broken out above 1.1989, in fact even above the round number slightly above at 1.2000, so the outlook looks bullish but not dramatically so. It is likely price fluctuations will remain small until the FOMC releases sue later. If the releases are dovish for the Dollar, then this pair looks set to take off in an upwards direction on that news, in line with its long-term trend. I do not have a lot of confidence in the new support level at 1.2000, but 1.1962 looks firm.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of the FOMC Statement, Projections, and Federal Funds Rate at 7pm London time, followed by the usual press conference. There will also be a release of Crude Oil Inventories earlier at 3:30pm.