Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1759.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1703.
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
The market was extremely quiet yesterday, with the price moving very little here or anywhere else over the course of the day. I wrote yesterday that a sustained break above 1.1717 would be a bullish sign. We did not get that, but we did see the price edge above the round number at 1.1700 and the bearish trend line a little way above that as well. There are signs now that 1.1703 has become support, so the technical position suggests that we are likely to see higher prices today. After such a quiet day the price typically makes a healthy range, so a test of the resistance at 1.1759 looks like the most likely scenario for today. I have a bullish bias.
There is nothing important due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm London time.