Yesterday’s signals were not triggered, as the price was already established above 1.1718 before the London open.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1718 or 1.1759.
- Place the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1665.
- Place the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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 if the price could get established above 1.1718, there should be a further rise today to the 1.1750 area, but the price would be likely to run into a lot of resistance there, so I doubt that it could rise much higher. There is a confluence of a bearish trend line, the psychological level at 1.1750, and it has also marked some key recent swing highs. This was a good forecast, as the price did gently rise while struggling above 1.1718 before failing a few pips below the 1.1750 area, forming a triple tap on a bearish trend line shown in the price chart below before falling quite strongly. There is a lower edge to this triangle which awaits a third tap also. Overall, this pair is in a long-term consolidation under the 1.1750 area, so seems difficult to predict provided it remains within that formation. There is short-term bearish momentum, but that is not guaranteed to continue as the London session gets underway. I have no directional bias and would find a long from 1.1665 or a short from 1.1718 equally interesting.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Manufacturing PMI at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.