Yesterday’s signals were not triggered, as the bullish price action took place a little below the support level identified at 1.1444.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1539 or 1.1566.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1444.
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 felt unable to take any directional bias yet as I needed to see further developments here to point the way. This turned out to be a good call as the price fell quite strongly, looking as if it would convincingly break the support level at 1.1444, but it then turned around and rose strongly, ending up more or less where it started. We also now have an ambiguous situation with the bearish trend line nearby, which now must be drawn as two trend lines, with the price currently sitting in between them. So, there is even more uncertainty here now. There is a long-term bearish trend, so I’d prefer to be bearish than bullish, but I still cannot take a real bias here. The action seems to truly be in the British Pound right now.
A break above 1.1539 would be a bullish sign.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of PPI data at 1:30pm London time.