Yesterday’s signals produced a losing short trade at 1.1400.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 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 1.1445 or 1.1547.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1371 or 1.1334.
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 the picture was looking more bullish, with the Euro attracting safe haven flows and the Dollar weakening. The short-term price action suggested there will shortly be another attempt at the resistance level of 1.1400 which was likely to be pivotal. It will probably be broken, and I would take a weakly bullish bias if the price could trade above 1.1400 for two hours, until the end of the London session. This was a good call as after spending two hours above that level, the price rose by another 35 pips during the London session. The FOMC release saw a hike in rates but a reduction by one of the number of hikes planned for next year, and this “dovish hike” has ultimately had the effect of weakening the USD almost everywhere. The Euro seems to have a good flow, and should be able to advance further if it can break above 1.1445, where I would take a cautiously bullish bias later
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There is nothing important due today concerning either the EUR or the USD.