Yesterday’s signals were not triggered, as neither of the key levels were reached during the specified time session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1715 or 1.1766.
- 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 was correct yesterday in forecasting a further move down. The price has broken below the former support at 1.1766 and is now even below the next level at 1.1715. The U.S. Dollar is very strong and the Euro looks to be one of the weakest currencies, perhaps being hit harder by recent developments in Spain than had been expected as today’s Catalonian general strike begins. A further fall to 1.1650 cannot be ruled out, despite the long-term bullish trend still technically in force. We see no meaningful bid in the Euro yet. I maintain a bearish bias.
There is nothing due today concerning either the EUR or the USD.