Yesterday’s signals were not triggered, as the bullish price action took place between 1.1838 and 1.1813.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1826 and 1.1813.
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 1.1914 or 1.1962.
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
I noted yesterday that the price of this currency pair is behaving technically and respecting key levels, which is good news if you are trading off support and resistance levels; and secondly, the long-term bullish trend is still intact and there is no reason why the price may not rise. The picture is still the same today, as the levels close to 1.18 have become a zone, and it can be expected to be supportive again if it is reached, particularly on a spike down which might happen after one of the major news releases today. The short-term price action is bullish, and suggests the price is going to trend upwards over the short-term, if the resistance at 1.1878 is broken – I think it is more likely to break than to hold.
Concerning the EUR, there will be a release of CPI Flash Estimate data at 10am London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.