Yesterday’s signals were not triggered, as there was no bullish price action at either 1.1600 or 1.1554.
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 1.1600 or 1.1676.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1496 or 1.1447.
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 there was a strongly bearish trend and a lot of negative sentiment generally on the Euro, while the Dollar is strong, so I thought it was straightforward to take a bearish bias. This worked out well, with the price falling heavily, reaching a climactic low near to the psychologically important level of 1.1500. This happened during the first half of the London session, and since then the price has basically just been consolidating. The action still looks weak, suggesting a further downwards movement is likely. However, it is worth noting that the price has been held here by 1.1500 and EUR/JPY at the same time by the 125.00 area, suggesting the Euro is hitting some key support which might hold despite the bearish environment. However, the long-term charts suggest that the price has room to fall further if it wants to, so I take a cautiously bearish bias today.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time.