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 entered before 5pm London time today.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2301.
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.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2369.
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
I wrote yesterday that we are now seeing the price fall and it looks decisively counter-trend, as if it is going to fall all the way to 1.2300, so I had a short-term bearish bias. My bias was correct, the price has continued to fall and is still looking likely to reach 1.2300. I have also identified a new, lower level of probable resistance at 1.2369 which is a confluence of a recent inflection point and a short-term trend line. There is a good chance of short-term price reversals at either 1.2301 or 1.2369, prior to the FOMC release due later today which could provide some unpredictable, volatile directional price movement.
There is nothing due important today concerning the EUR. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.