Yesterday’s signals were not triggered, as the bearish bounce from the resistance level at 1.1789 did not occur until after the specified time session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1650.
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 ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1789.
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 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 anything interesting happens here today, it is more likely to be on the bearish side. It was, but it happened late in the day with the bearish rejection of the resistance level at 1.1789. The technical picture is now clearer, with the price slowly moving down within a wide bearish channel. Despite that, there may be a double bottom at 1.1730 which could hold and eventually result in an upwards move. The next key test will probably be at the short-term bearish trend line and the resistance level of 1.1789 again. Should they be broken to the upside, the long-term bullish trend has a chance to take off again. If the price instead breaks down and gets established below 1.1700, that will be the end of that trend.
There is nothing significant due today concerning the EUR. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm.