Yesterday’s signals were not triggered, as none of the key levels were reached.
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 1.1250, 1.1306 or 1.1354.
- 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
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1150.
- 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
Yesterday saw this currency pair fall sharply and close near its low at a 1-year low price, on above-average volatility. This was clearly a bearish sign and I took a bearish bias yesterday which worked out well, noting that there was no support until 1.1150 so the price had plenty of room to fall further, which it did. Although the price made a bullish retracement, it seems to have created new flipped support to resistance confluent with the big quarter-number at 1.1250. Provided 1.1250 holds as resistance, the price should eventually resume its downwards movement to make new low prices. Therefore, I take a bearish bias today below 1.1250 until 1.1150.
There is nothing important due today concerning either the EUR or the USD.