Yesterday’s signals were not triggered, as there was no bearish price action at 1.1797.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today during the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of the descending trend line shown in the price chart below currently placed at about 1.1825, or 1.1875.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1700.
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 25 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 wrote yesterday that 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. This was exactly what happened, with a strongly bullish short-term move which quickly sold off, with the price now trading well below 1.1800 again. The bearish trend line now sits with a much shallower angle. Despite the fall in price, the action does not look bearish, but seems more likely to range until the FOMC release later, meaning a quiet day is probably in store for this pair. Note also that the GBP/USD pair is currently acting more bearish, so a Dollar advance is likely to express itself better there than here.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.