Yesterday’s signals produced a profitable long trade following the bullish engulfing candlestick formation which rejected the support level at 1.1496. The price is flat now, so any remaining profit should have its stop loss moved up.
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 1.1630 or 1.1677.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1496.
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 I would only take long trades today if there were a bearish pullback to 1.1500 with a bullish bounce. This is exactly what happened, although the price ranged sideways throughout the entire London session, only taking off after the London close, which is unusual. The strongly bullish picture continues, with the price now flattening out just below the nearest resistance level at 1.1580. This price area, above 1.1580, was a key supportive area in the past, and it may be difficult for bulls to push the price any higher over the short-term. However, there is strong bullish momentum and the price continues to hold up. I see 1.1580 and 1.1630 as the pivotal levels to watch today, and I would take a bullish bias above 1.1580.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.