Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.1700.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today during the next 24-hour period only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1748, or 1.1769.
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 1.1650.
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 predicted yesterday that the price would be likely to range until the FOMC release later, meaning a quiet day was probably in store for this pair. I was wrong, there was actually more action – a fall in line with the long-term bearish trend – before the release than afterwards. The picture is even more bearish now as support has been wiped out, and we do not see much of a bearish retracement here even though the FOMC release was dovish for the Dollar. The price looks weaker here than it does in GBP/USD. These are bearish signs, and as there is a long-term bearish trend and room for the price to fall to at least 1.1650, I am comfortable taking a bearish bias today.
Concerning the EUR, there will be a release of the ECB’s Monetary Policy Meeting Accounts at 12:30pm London time. There is nothing due today regarding the USD.