Yesterday’s signals were not triggered, as the resistance level at 1.1786 was not reached until after London closed.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today over the next 24-hour period only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1797.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1700.
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 25 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
I wrote yesterday that I had a strongly bearish bias on this pair. I was wrong, the price moved up and eventually broke the resistance level at 1.1786. The Euro was one of the strongest currencies yesterday, and the Dollar paused in its advance. The price made a new high just below 1.1800 before selling off gently from the area during the Asian session. However, the fall looks very fragile. The price now seems to be at an interesting point technically: there is a confluence of resistance, a round number, and a bearish trend line at 1.1800. As this pair has been in a long-term and strongly bearish sell-off for a while, a break above 1.1800 might be surprisingly strong for bulls, at least for a few hours.
There is nothing due today concerning either the EUR or the USD.