Yesterday’s signals were not triggered, as there was no bearish price action at 1.2359.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered 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 1.2393, 1.2359, or 1.2330.
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 Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2500.
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 price of this pair again rose relatively strongly, although again this has been more about the weakness of the U.S. Dollar than real strength in the Euro, evidenced by the fact that the Pound and Japanese Yen have advanced further. Yesterday’s strong move reversed sharply towards the end of yesterday’s New York session. On its way up, the price printed several new support levels which can be seen in the price chart below. As the pair is in a long-term bullish trend, these may now be buying opportunities if they hold. At the time of writing, it looks as if the level at 1.2393, confluent with the round number at 1.2400, may be giving a bounce suitable for an entry.
Concerning the EUR, the European Central Bank will be releasing its Minimum Bid Rate at 12:45pm London time, followed by a press conference 45 minutes later. There is nothing due regarding the USD.