Yesterday’s signals were not triggered, as the key level at 1.1748 was never quite reached.
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 1.1748 or 1.1769.
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 1.1680 or 1.1648.
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 price was likely to rise further before being held at about 1.1750. This is exactly what happened. This pair is seeing a lot of action, its at the heart of the market and is in a strong bearish trend. However, there is currently a strong bullish retracement with new support levels still holding, so it looks as if the retracement has 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.
Concerning the EUR, the President of the ECB will be giving a minor speech at 2pm London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.