Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken 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 1.2272.
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 Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2359.
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 weakness of the U.S. Dollar over recent hours has seen this pair move up in price, but it is clear the Euro is not being bought strongly, unlike the British Pound and the Japanese Yen. The price has still not tested a resistance level. There is a new support level below which can be identified at 1.2272 which at least gives bulls a plausible level at which to look for a good bounce, but I see the GBP/USD and USD/JPY pairs as likely to provide better opportunities today. There is a long-term bullish trend, but I save my bullish bias for GBP/USD.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.