Yesterday’s signals produced a long trade from the doji candlestick which rejected the support level at 1.1384 during the earlier part of the London session. However, this only produced a little more than 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1433 or 1.1486.
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 H1 time frame immediately upon the next touch of 1.1340 or 1.1308.
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 broke below 1.1384, and then broke further to about 1.1375 and below, that would be a bearish sign, and I would take a bearish bias then. If the level were tested and continued to hold, that would be a bullish sign, so 1.1384 was likely to be pivotal. This did not work out so well, as the price broke below the specified area but went nowhere, just consolidated without respecting the level, so 1.1384 has been invalidated.
We have a long-term bearish trend in this pair, but the price is still going sideways and not giving any real clues as to what is most likely to happen next. I have no short-term directional bias on this pair and we probably need to see more developments before it will be worth getting involved in a trade on this currency pair.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.