Yesterday’s signals produced a losing long trade from the bullish doji candlestick rejecting the support level at 1.2208, although the support ultimately held and could have been traded for a second, profitable long trade later in the day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2208.
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 1.2359 or 1.2388.
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 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. The fact that the new support level at 1.2208 ultimately held up after being tested is another bullish sign. However, the sell-off that has been seen so far during the Asian session after the high peak is suggesting that we are likely to see a day of consolidation after the recent swings in price. This suggests in turn that the support level at 1.2208 will probably hold today, so might be used profitably by scalpers. There is a long-term bullish trend, and I maintain a bullish bias.
There is nothing important due today concerning either the EUR or the USD.