Yesterday’s signals were not triggered, as there was no bearish price action at 1.1789.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken from 8am to 5pm London time today only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1789.
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 run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1891.
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 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
I wrote yesterday that the next key test would 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. This is exactly what happened, with the British Pound and the Euro rising strongly yesterday. However, technically the wide bearish price channel is still holding, as the upper trend line has not been broken, even though the former resistance at 1.1789 has been flipped to become likely support. The long-term bullish trend will be truly re-asserted if this trend line is broken to the upside.
Today will probably be an important and active day for this pair, as we have the monthly ECB forward guidance due.
Concerning the EUR, the ECB will be releasing their 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 London time.