Yesterday’s signals produced a profitable long trade following the bullish rejection of the support level at 1.1759, before coming within 1 pip of making the day’s high at the resistance level of 1.1759.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1759 or 1.1700.
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 1.1669 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 20 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 action was likely to be messy and unpredictable here today, and in the absence of any likely major news, it would probably be a very challenging day to make any money trading this currency pair. I was correct insofar as the price moved both up and down significantly, and happily, the turns were at the support and resistance levels given almost to the pip. The U.S. Dollar is much stronger, and the price has broken below the technically significant support level at 1.1700. There is also still a long-term bearish trend. However, it is worth noting that the Euro has held up relatively well against the Dollar, compared to the Japanese Yen, so I do not see this pair as at the centre of the market’s focus today, although that could change if the ECB Minutes release has anything interesting to say. The price action in the late Asian session suggests that the support at 1.1669 is quite likely to hold and push the price up to at least 1.1700 today, but I do not feel comfortable having a definite directional bias.
Concerning the EUR, there will be a release of the ECB Monetary Policy Meeting Accounts at 12:30pm London time. Regarding the USD, there will be a release of CPI data at 1:30pm.