Yesterday’s signals were not triggered, as there was no bearish price action when the identified resistance level at 1.1500 was reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1572, 1.1633, or 1.1659.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1500.
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 outcome of today would probably depend upon whether or not the support at 1.1416 held. If it held, we would be more likely to see a bullish break of 1.1500 at some time this week. I said that I would take a bullish bias above 1.1500. This was a pretty good call and at least a profitable one, with the price breaking up strongly past 1.1500 and continuing all the way to 1.1570. However, I did not think the breakout would come during yesterday’s London session, so I found it surprising, and in that sense I was wrong.
I have been highlighting this pair over recent days as it has slowly threatened to become a major mover as the price reaches new multi-week highs. However, the short-term momentum shows the price falling from the next resistance level I have identified as 1.1572, so it seems that some kind of pull-back is going to happen now. I will take a bullish bias on this pair today if there is a strong bullish reversal later above the 1.1500 level.
There is nothing of high importance due today concerning the EUR. Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 5pm London time.