Yesterday’s signals were not triggered, as the price never reached 1.2260.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2187 or 1.2260.
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.
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 had a bearish bias. This worked out OK, with the price continuing to fall, and printing a new obvious lower resistance level at 1.2187. This is a sign of continuing bearishness, but it is also notable that the price hit its 3-month low at 1.2159 a few hours ago, which held to the pip, so this also is a level to watch as potential support. A break below 1.2159 could see a strong further fall. The ECB is giving its monthly guidance today, and I think that if it gives any sign that is bearish for the Euro we will see a strong, sharp downwards move. Anything might happen, but the signs are bearish. The price is making a bullish retracement at the time of writing, but the new resistance at 1.2187 is holding for the time being. If it continues to hold as London opens, there should be a move down.
Concerning the EUR, the ECB will announce its Minimum Bid Rate at 12:45pm London time followed 45 minutes later by the usual press conference. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm.