Yesterday’s signals were not triggered, as there was no bearish price action at 1.1314.
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 1.1354, 1.1368, or 1.1393.
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 1.1256.
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 despite the long-term bearish trend, a further rise looked quite likely over the short-term, but much would 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. This was a good call, as the price has risen further, and the British government has approved the outline of a Brexit deal, although it is not clear this will get final Parliamentary approval. It creates a more bullish environment for EUR/USD and GBP/USD but is subject to political shock.
The price is reaching a cluster of several resistance levels, which will be a real test of the short-term bullishness and may well prevent the price from rising much higher. An early failure at 1.1354 could signify a down day, but I again think it looks too uncertain to take a defined bearish bias.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 4:30pm.