Yesterday’s signals were not triggered, as the price action at 1.1724 was not bullish enough to signal a long trade entry.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1685 or 1.1624.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1758 or 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
There are some mildly bullish signs appearing: although the price is still within the bearish channel drawn in the chart below, it is being supported by an inner trend line, from which the price is rising. The next test will be whether the price can break the new resistance level at 1.1758. If this level holds the price for the next few hours, then it will become confluent with the upper channel trend line, and probably act to drive the price down on another bearish leg. So, this area will probably be pivotal to today’s action and should be watched carefully.
There is no long-term trend in this pair, and I have no directional bias.
There is nothing important due today concerning the EUR. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims at 1:30pm London time, followed by Crude Oil Inventories at 5pm, and FOMC Meeting Minutes at 7pm.