Yesterday’s signals produced a profitable short trade from the bearish rejection of the resistance level identified at 1.1962, which held exactly to the pip. The support level identified at 1.1891 also held exactly to the pip.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1891 or 1.1838.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1962 or 1.1984.
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 price continued to rise yesterday in line with the bullish trend, but as I forecasted, the price was unable to break past the resistant area at 1.1962, which held to the pip. This often happens on a day like yesterday when no major news events are scheduled. The price later pulled back, breaking its bullish channel, but also being held to the pip by the support level at 1.1891. The price has risen a little from there, so it seems more likely to rise today than to fall. I have a bullish bias.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, while the new designated Chair of the Federal Reserve will be testifying before Congress at the same time. The U.S. Treasury Secretary will be giving a minor presentation at 8:45pm.