By: DailyForex.com
Yesterday’s signals were not triggered, as the bullish price action very close to 1.2347 did not finalize the turn until London closed.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2436.
* Place the stop loss 1 pip above the local swing high.
* Adjust 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.
Long Trades
* Long entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2343 or 1.2304.
* Place the stop loss 1 pip below the local swing low.
* Adjust 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
Yesterday I wrote that I had a weak bullish bias, and that the resistance at 1.2390 was more likely to break instead of holding. I was partially correct: the resistance level did break, and was invalidated, but the price then turned around and pulled back quite strongly. However, the next support level, although it was wrong by a few pips, did hold, and the price has moved up from there. This leaves the pair in a mixed situation: we may now have a lower swing high forming at 1.2380, which could signal a downwards movement. If the price breaks below the support at 1.2343 it would be likely to signal a deeper pull-back within the long-term bullish trend. I have no directional bias today.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.