Yesterday’s signals were not triggered, as there was no bearish price action at 1.1700 or 1.1718.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken 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 1.1700, 1.1731, or 1.1758.
- 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 1.1598.
- 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 still felt that the current price area was too strong for the bulls to just keep going and smashing through it. This was a good call as although the bullish movement which has been going on for several days seemed to continue yesterday as the London session got underway, the price eventually failed in the area above 1.1700 and has now fallen further. If the price cannot rise above 1.1700 today, then it is likely to fall to at least 1.1650 and possibly even further. I see the area above 1.1700 as just too strong to break yet. Of course, there is major data due later for the USD, and if the result is a major surprise then the price could go anywhere.
I will be bearish if the price fails at 1.1700 during the first few hours of the London session.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time followed by Crude Oil Inventories at 3:30pm.