Yesterday’s signals were not triggered, as there was no bearish price action at 1.2248.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2208.
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 1.2359 or 1.2388.
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 focus of the Forex market has now shifted to this pair, away from the GBP/USD pair which had been seeing the greatest level of volatility for several weeks. This coincides with a strongly bullish move over the past few days, which included the price making a new 3-year high again yesterday. This presents a strongly bullish picture, and there is now an obvious new support level at 1.2208 which could provide a new buying opportunity. Another bullish development yesterday saw three resistance levels at and above 1.2248 invalidated. There is no reason not to maintain a bullish bias, with the USD very weak and the Euro the best-performing major currency over the long term.
There is nothing important due today concerning either the EUR or the USD.