Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today.
Long Trades
- Go long following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1715 or 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1811 or 1.1838.
- 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
As expected yesterday, my short-term bias was correct and the price did continue down to get near the next lower support level at 1.1715. We are seeing a reasonably strong surge in the U.S. Dollar almost everywhere, and especially in this pair against the Euro. However, there are now some initial signs the move is slowing and the price may be starting to bottom out above 1.1715, even if only because the market awaits key U.S. data later which could push the price anywhere. The bottoming movement is firmer than we are seeing in the Pound and Yen, which might mean poor U.S. data later will be best expressed in this pair. It is probable that little will happen until the New York session later.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing data at 3pm London time.