Yesterday’s signals were not triggered, as there was no bullish price action when 1.1680 was reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken until 5pm London time today over 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 1.1748 or 1.1769.
* 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 1.1648 or 1.1600.
* 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 it looked as if the (bullish) retracement had not fully played out yet, meaning it is not very safe to go short yet. I would be bearish below 1.1648 but it looks likely that the price will make another upwards move and attempt to break beyond 1.1750 before it can fall below 1.1648. This is what happened. The price now seems poised for another test of 1.1750 which is the start of an area of confluent trend lines and horizontal levels. The Pound is stronger than the Euro which is a sign that this area of resistance is likely to hold and eventually produce a resumption of the long-term bearish trend. I have no directional bias but would be looking for short opportunities once the price has rejected 1.1748 and turned convincingly bearish.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.