Yesterday’s signals were not triggered, as there was no bullish price action at 1.1535.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 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 1.1594 or 1.1633.
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 1.1566.
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.
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 support levels were being broken as we moved towards the London session, so I took a bearish bias below 1.1566. This may have worked out well despite the price ending the day a little higher as the price continued to fall strongly all the way down to just a shade above the major round number at 1.1500, which I also noted might be supportive, before bouncing back very strongly. We have now seen a very strong bullish recovery and the key thing to watch today is probably going to be whether the 1.1600 level holds. The price is likely to spend the time following the major data release later moving away from that level.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm. The Chair of the Federal Reserve will be giving a minor speech at 9pm. There is nothing due today concerning the EUR.