Yesterday’s signals were not triggered, as there was no bullish price action at 1.1679.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today over 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 1.1676, or 1.1748.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1600 or 1.1554.
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 took no bias yesterday and felt very uncertain about the market as it was a public holiday in the two major trading centres, London and New York. I thought the rally might continue to the 1.1750 area at least. In fact, there were new rumours from Italy which made the Euro fall heavily for a few hours, before it bottomed out just above 1.1600. This move was in line with the long-term bearish trend. There is a strongly bearish trend and a lot of negative sentiment generally on the Euro, while the Dollar is strong, so I think it is straightforward to take a bearish bias. I would be extremely careful about taking any long trades. It is interesting that the price has been able to continue moving down quite easily even after falling quite far and reaching an area where we should naturally expect a bullish bounce, which is a bearish sign. A short from the 1.1650 area would probably be a nice trade set-up.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.