Yesterday’s signals were not triggered, as there was no bearish price action at 1.1677.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered 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 1.1700 or 1.1718.
- 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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of1.1600.
- 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 had no directional bias as the area between 1.1600 and 1.1700 has a long-term pivotal significance and could be likely to halt any further rise, although I was still more comfortable taking long than short trades. I should have been more bullish as the day saw yet another rise in this currency pair, although it now seems to be falling from its peak high just under the resistance level at 1.1700. I still feel the way I felt yesterday, that the current price area is too strong for the bulls to just keep going and smashing through it. If the price ends today above 1.1750 that would be a very strongly bullish sign. I have no directional bias overall and think we could see either an up or down movement today, and there is quite a long way for the price to fall until it reaches the nearest support level at 1.1600.
There is nothing important due today concerning either the EUR orthe USD.