Yesterday’s signals were not triggered, as there was no bullish price action at 1.1747.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Protect any open trade by 6:30pm.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1685.
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 1.1806 or 1.1848.
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 medium-term bearish situation continues, with the price moving down within a bearish price channel which is marked out within the chart below. The former support level above 1.1700 has been invalidated, leaving room for the price to fall further, to at least 1.1685. However, there was a bullish “V” shape printed at the low of 1.1720 and the price seems to have recovered most of what it lost yesterday, which suggests that the price may continue to rise over the short term, yet it looks as if the bearish trend lines not far above should halt the advance, at least until the FOMC releases due later, which could push the price anywhere.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm, and FOMC economic projections, Statement, and the Federal Funds Rate at 7pm. Finally, the FOMC Press Conference will begin half an hour later.