Yesterday’s signals were not triggered, as there was no bullish price action when the support levels at 1.1897 and 1.1891 were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1775.
- 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 1.1891.
- 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 Korean tension has hit this pair quite hard, as this has given a boost to the Dollar, but the Euro is also suffering from yesterday’s comments by Mario Draghi which suggest the ECB’s balance sheet may be unwound later rather than sooner. Technically, the price has broken well below the medium-term consolidating triangle which had been containing the price, and at the time of writing appears to be also breaking below crucial support at 1.1838. If the bearish momentum continues, the price should soon make a new 1-month low, and will probably keep going down until at least 1.1775. I have a very short-term bearish bias on this pair.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by the Chair of the Federal Reserve speaking at 5:45pm.