Yesterday’s signals were not triggered, as none of the key levels were reached before 5pm London time yesterday.
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 touch of 1.1806, 1.1775, 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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1848 or 1.1961.
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 off 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
Yesterday’s FOMC release and rate hike counter-intuitively weakened the Dollar and gave this pair a chance to make a quick bullish move. This produced a breakout above the bearish trend lines which had been containing the price, although the zoomed-out chart below shows the price is still within a very wide but definitely bearish structure over the medium-term. There is no long-term trend. The former resistance at 1.1806 is now probable support.
There is major data due later for both sides of the pair, so we could see a lot of volatility before and after New York opens. In these relatively trendless conditions, fading fast moves which are then rejected at key levels is probably a good strategy. I have no directional bias.
Concerning the EUR, there will be a release of the ECB’s Minimum Bid Rate at 12:45pm London time, followed by the ECB Press Conference at 1:30pm. Regarding the USD, there will be releases of Retail Sales and Unemployment Claims data at 1:30pm.