Yesterday’s signals were not triggered, as the low price of the day was still a couple of pips above the support level identified at 1.1732.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of the upper trend line of the price channel sitting in the price chart below, which is currently sitting at about 1.1820.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1732, the bullish trend line shown in the price chart below currently sitting at about 1.1715, or 1.1659.
- 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 the picture had become unquestionably bullish, with the price well established within a wide bullish price channel. I took a bullish bias above 1.1732. To some extent this worked out OK, as this support level held and produced an upwards movement during most of the London session before the Dollar recovered and the price sold off.
There has been no change to this technical picture, although the action overall has reduced the bullishness a little. It is quite likely there will be only minor movements today during the London session, with the market looking to the major FOMC releases tonight which should bring more volatility and possibly direction.
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 Statement, Federal Funds Rate, and Economic Projections at 7pm, and the usual press conference half an hour after that.