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 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 1.1431 or 1.1456.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1355, 1.1306, or 1.1296.
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 I remained optimistic about the long-term bearish trend and would see strongly bearish reversals at any resistance points as good potential short trade entries, although I had no directional bias for the day. In fact, yesterday’s action was relatively inconclusive, though mildly bullish, with none of the key levels being reached.
I take the same approach as yesterday: I think the bulls may retain control over the short term, but I would still be seeking a short trade back into a resumption of the long-term bearish trend. A consolidation below the resistance at 1.1431 is quite a likely outcome. A strong double top forming at 1.1456 could be a great short trade opportunity.
There is nothing important due today concerning either the EUR or the USD.