Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken from 8am to 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1724 or 1.1685.
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
The seemingly total breakdown in German coalition negotiations hit the Euro yesterday, but although it fell, recovered and then fell again, nothing especially dramatic happened. The price is still within the lengthening short-term bearish channel, or flag pattern, shown in the chart below. Over recent hours we can see that the support level at 1.1724 is again making its presence felt and holding up the price. This suggests we may see a rise from here and a reassertion of the long-term bullish trend. Even if the price falls and breaks below 1.1724, the next level at 1.1685 is very significant as it’s a flipped level from the daily chart. This suggests the next strong directional movement, when it comes, will be upwards.
There is nothing important due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve Janet Yellen will be speaking at a panel discussion at 11pm London time.