Yesterday’s signals produced a losing long trade at the bullish pin candlestick rejecting the support level identified at 1.2385.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Go short following a strong bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2361 or 1.2384.
Put 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.
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.
Long Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2296.
Put 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.
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
I wrote yesterday about how the bullish channel had broken down, but I wasn’t taking a directional bias. I also noted the relatively high volatility. The USD advanced strongly yesterday and that was clearly expressed. The price fell and has printed new resistance levels along its course, while the only valid support level now remaining above the 1.2000 area is at 1.2296 – the price so far has made a low just above that. There is a long-term bullish trend, but the USD looks strong and so there may well not be any rise today. However, due to the long-term trend, a long at 1.2296 remains a possibility. It is hard to predict direction today, so I take no bias. Note the technical channels in the price chart below, and how the price now seems to be contained within a short-term bearish channel.
There is nothing due today concerning either the EUR or the USD.