Yesterday’s signals were not triggered, as there was no bearish price action at 1.1600.
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 1.1676 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 1.1648 or 1.1600.
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 wrote yesterday that I took a cautiously bearish bias. I was correct to be cautious as the price made its strongest daily rise for more than two months! There were three reasons for the movement: an apparent defusing (at least temporarily) of the Italian political crisis, and relatively weak U.S. jobs and GDP data (although these numbers were only slightly below expectations). The Dollar fell everywhere, while the Euro was the biggest gainer.
The upwards movement has created new higher support, and the price is showing no signs of falling, so if it is able to break above 1.1676, that would suggest it will continue up to the psychologically important 1.1750 area. Alternatively, a break down below 1.1648 would suggest a continuing fall to 1.1600. I have no directional bias while the price is within its current narrow range (as at the time of writing)
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time.