Yesterday’s signals were not triggered, as there was no bullish price action at 1.1929.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line shown in the price chart below, which is currently sitting at about 1.1955.
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 1.1885, 1.1864, or 1.1848.
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 this pair currently looked the most bearish of all the major currencies trading against a strengthening U.S. Dollar, and I took a bearish bias accordingly. This worked out fine and was accurate, although the move down was limited as it was a Monday and a public holiday in London. The former support level at 1.1929 was invalidated by the price action, although the round number at 1.1900 held. Technically, the picture is dominated by the short-term bearish trend line connecting recent highs, shown in the price chart below, which looks very convincing and can be expected to continue to drive the price down. I again have a bearish bias today, but I note the cluster of support levels below 1.1885 which may be hard to break.
There is nothing due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve will be speaking at a conference at 8:15am London time.