Yesterday’s signals produced a profitable short trade following the bearish rejection of the resistance level at 1.1431, but the trade only gave the minimum 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered 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 1.1486.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1393 or 1.1355.
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 I thought 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 seemed like quite a likely outcome. This was in fact the story over the London session, but right at the end of the New York session the price moved above that area with high relative volatility, making a mess of the technical picture. The action so far today suggests consolidation. The U.S. Dollar is generally weak, but the Euro is also one of the weaker currencies. I still see this pair as likely to be interesting short if the U.S. Dollar strengthens later, although it is quite probable this won’t happen until the FOMC releases tomorrow.
There is nothing important due today concerning either the EUR or the USD.