Yesterday’s signals produced a profitable long trade entry from the bullish engulfing candlestick which rejected the support level at 1.1629.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today, over the next 24-hour period.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1732.
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 1.1673 or 1.1629.
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 the line of least resistance is certainly upwards, but safe-haven, risk off assets seem to be strong so far this week, suggesting that the price will struggle to rise. I foresaw a gentle consolidation above the 1.1600 area. I was wrong about the gentle consolidation but right about the lesser resistance being above, as the price not only continued to rise healthily but also printed new higher support. Now, however, the price is reaching a more crucial area of resistance which it might find difficult to break, which is somewhat confluent with the key psychological level at 1.1750. So, even though the Euro is currently the strongest currency, I have no confidence in today’s direction at all, and expect the action to be choppy. I have no directional bias but there is volatility so there may be pips to be made by trading reversals when the price is over-extended.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.