Yesterday’s signals were not triggered, as there was no bearish price action at 1.1250.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered 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 1.1314, 1.1354 or 1.1368.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1256.
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.
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 provided 1.1250 held as resistance, the price should eventually resume its downwards movement to make new low prices. This was a reasonably good call as the level quickly broke up, and it was the pivotal point for the day as the price put in a solid rise. The bullish move looks quite impulsive and was supported by new higher support at 1.1256. Despite the long-term bearish trend, a further rise looks quite likely over the short-term, but much will depend upon whether the British government can get the Brexit deal passed on their side – positive prospects for that will see the British Pound and Euro rise further. I have no directional bias today.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CPI data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 11pm.