Yesterday’s signals produced a losing long trade after the bullish engulfing candlestick on the 1-hour chart rejected the support level at 1.1393.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1417 or 1,1445.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1395 or 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.
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 as the situation still looked bullish, as the price was close to making a new 20-day high and over the short-term has flipped the former resistance level at 1.1445 to become new higher support, I would again take a bullish bias if the price was making new highs at 9am London time. This was a good call as after initially rising to new highs, the price reversed dramatically by 9am London time and continued to fall throughout the day, breaking below several support levels, which was a surprise technically.
Now, the price action from 1.1359 is bullish and suggests we are quite likely to see the price rise further today. However, I am very nervous of the current state of the Forex market, movements look quite strange and unpredictable, and almost every currency pair is range-bound. I have no directional bias on this currency pair today.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.