Yesterday’s signals were not triggered, as the support level at 1.1732 was not reached until after London closed.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1875.
Put 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 1.1732 or 1.1680 or 1.1647.
Put 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 was correct yesterday in thinking that it would be a relatively quiet trading day for this currency pair. However yesterday was notable for a drop in the value of the British Pound due to a new question as to whether the current government will survive, and whether it will be able to negotiate an exit deal with the European Union, as well as a strengthening of the U.S. Dollar due to receding fears of a trade war. The price has fallen, but it is significant that the Euro has, so far, held up quite well, and that the support at 1.1732 has held and the ascending trend line has not even been reached yet. These may be bullish signs, we should find out today. I have no directional bias as the picture looks too close to call – both a resumption of the medium-term bullish trend and a strong break down of 1.1732 look equally likely right now. Just remember that the daily chart does look bullish if 1.1732, don’t be overly impressed by the bearish pin candlestick there which formed yesterday.
There is nothing important due today concerning either the EUR or the USD.