Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1838 or 1.1750.
- 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 1.1961.
- 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
This pair has been muted and that is not surprising as the monthly guidance from the European Central Bank is due today. 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, and it is possible Mario Draghi might allude to that in today’s press conference. However, there is still a long-term trend in force which is very bullish, so it may not be so easy for the ECB to talk the Euro down if they want to. If the price can break up above 1.1961, the pair will look much more bullish. The line of least resistance is still looking more up than down, with the price being held by a bullish trend line and having broken a short-term bearish one. Still, the press conference is likely to be the sole driver of price today.
Concerning the EUR, the European Central Bank will announce the Minimum Bid Rate at 12:45pm London time, followed by the usual press conference 45 minutes later. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm, followed by Crude Oil Inventories at 3pm.