Yesterday’s signals were not triggered, as there was no bearish price action at either 1.1685 or 1.1724.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 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 1.1724.
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 1.1891.
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 off 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
The Euro has exploded into life with its strongest one-day rise in almost three months, following better than expected German data and an increased sense that the Eurozone’s economy is booming. The price not only broke out of its bearish channel, but even went so far as to break up above a long-term bearish trend line at about 1.1785. After a very strongly bullish move like this, the market usually sees another strong move, either in the same direction as yesterday, or as a reversal of the previous day’s move. It currently looks as if the price is more likely to rise again today. There is a former resistance level at 1.1786 which now seems to be acting as support. It is a little early to rely upon this level, but if it keeps holding, the price should rise. If it breaks down, we are likely to see a deeper retracement, to perhaps 1.1750 or maybe even lower, to the new support level at 1.1724.
The price is back above its levels from 3 and 6 months ago, signalling a technical resumption of the long-term bullish trend.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.