Yesterday’s signals were not triggered, as the price never quite reached the resistance level at 1.1445 and there was no bullish price action at 1.1424.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 1.1350 or 1.1306.
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 the picture was looking considerably more bullish, with the Euro being one of the strongest currencies. However, I did want to see the support at 1.1424 hold and the price to rise above 1.1450 before taking a bullish bias, which was a good enough call to stay out of any unprofitable long trades. The price fell because the sharp downwards movement in the British Pound dragged down the Euro.
The picture now looks more bearish, but essentially uncertain. If the Pound stabilizes and the support at 1.1350 is retested and holds, I would take a cautiously bullish bias here later.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of PPI data at 1:30pm London time.