Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
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 strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1650.
· 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 1.1789.
· 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
I wrote yesterday that if the price broke the bullish, supportive trend line down, it would be a bearish sign. This is what happened, and the picture is more bearish, with the Euro looking quite weak generally. However, it is important to note that the swing low at 1.1730 has held and produced an upwards movement when the level was rejected, pushing the price back up above the old trend line. This means the picture is unclear overall. The long-term bullish trend is in danger, the price truly only needs to get established below 1.1700 for this to happen. If anything interesting happens here today, it is more likely to be on the bearish side.
There is nothing significant due today concerning either the EUR or the USD.