Yesterday’s signals were not triggered, as unfortunately there was insufficiently bullish price action when the price first hit 1.2260.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2361.
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 bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2260.
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 took a bullish bias yesterday for several reasons, and the day’s trading played out just as I thought I would. The support level at 1.2260 and the broken trend line near it acted as a good base for a further rise. The price action now suggests this move may be topping out, which means we may be due a pull-back. It would not surprise me if the price moved down a little over the course of today, but ultimately, I remain bullish above 1.2260 – the bigger profits are most likely to still be on the long side, and there is no change to the bullish technical picture.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of PPI data at 1:30pm London time.