Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered 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 1.1539 or 1.1566.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1444.
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 took a bearish bias yesterday, but the price has essentially gone sideways. This currency pair is at an interesting point: the bearish long-term structure is intact, resistance has not been broken, there are lower highs, the bearish trend line remains unbroken. Yet there is a first sign of a bullish recover, with the double bottom just above 1.1460. This suggests that we may need to see a deeper bullish retracement before the price might fall again. On the other hand, there are short-term signs that the price is selling off from the psychological level of 1.1500 as we head into the London open, which would be a bearish sign if it holds. I cannot hold any directional bias yet as I need to see further developments here to point the way.
There is nothing important due today concerning either the EUR or the USD.