Yesterday’s signals were not triggered, as the bullish price action took place below 1.2296.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
· Go short following a 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 1.2286.
· 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 had no directional bias yesterday. This turned out to be a correct approach as the price essentially just consolidated. My estimation of the support at 1.2296 was a little high, now I would say it is more like 1.2286. The market is currently dominated by a stock market sell-off. The price action is weighing increasingly heavily on support, and there is nothing below 1.2286 until the 1.2000 area is reached, so a bearish breakdown could be very strong if it happens. However, there is still a long-term bullish trend in force. I against have no bias, but the picture would look more bearish below 1.2286 and more bullish above 1.2384.
There is nothing due today concerning either the EUR or the USD.