Yesterday’s signals were not triggered, as there was no bearish price action at 1.1444.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1580 or 1.1630.
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 1.1496 or 1.1444.
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 I would take a bullish bias above 1.1444. This was a great call, as we saw the price rise halfway through the London session, struggle to get above that level, and then make a strong bullish break of almost 100 pips. Looking at a daily or weekly chart of this pair shows that this seems to be a very strongly bullish reversal, despite the long-term bearish trend still being in force. There is plenty of momentum here, with two resistance levels having just been overcome, which suggests the price can rise higher. However, this area from about 1.1530 to 1.1550 was a key support zone over several days, so the price may struggle to get much higher today. For this reason, I would be careful about taking any long trades today unless there is a bearish pullback to 1.1500 with a bullish bounce there first, but I would not want to be taking any short trades either.
There is nothing important due today concerning the EUR or the USD.