Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1838 or 1.1750.
- 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 1.1961.
- 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
Other currencies rose against the U.S. Dollar yesterday, but the Euro didn’t really do much and was strangely muted. This suggests that despite the long-term bullish trend, there is something wrong with the market’s sentiment on the Euro. There has been a lot of talk about how the ECB may not want the Euro to rise above 1.2000, leading to this area beginning to be seen as a price cap. However, it is foolish to bet against a strong trend too early. If the price can break up above 1.1961, the pair will look much more bullish, with an even earlier indicator being the short-term bearish trend line shown in the chart below. The line of least resistance is starting to look more up than down.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.