Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken 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 1.1989 or 1.2060.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1929 or 1.1885.
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 was correct to take a bearish bias yesterday, as the price essentially traded downwards until the FOMC release. This initially sent the price rising fast to test the earlier highs, before it fell again to make news lows. However, the Asian session has seen the price rise again, and at the time of writing it is testing a new lower resistance level at 1.1989. The U.S. Dollar has been falling everywhere during recent hours, but it seems to be falling most strongly against the Euro. Today may be a counter-trend day, if the level at 1.1989 is broken and especially if the price can trade above the psychologically important level of 1.2000, then I would see it as likely to have an essentially upwards direction. It would be supported by an FOMC release that was, if anything, a little dovish for the greenback. However, none of this invalidates the rhythm of the strong long-term bearish trend.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.