Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.1700.
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 1H1 time frame immediately upon the next touch of 1.1731 or 1.1758.
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 of 1.1653.
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 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.
This was a good call as it was an accurate forecast of what happened during the first half of the London session. The price was dragged up by a sharp rise in the value of the British Pound on rumours of a Brexit deal. However, it has still not been able to convincingly break above 1.1700. I now see no clear resistance until 1.1731, and the picture is still quite bullish, but less so. I would only be bullish today above 1.1731. A day or two of consolidation between 1.1650 and 1.1731 is now quite likely.
There is nothing important due today concerning either the EUR or the USD.