Yesterday’s signals were not triggered, as none of the key levels were reached during yesterday’s London session.
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 1.1486, 1.1540, or 1.1572.
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 1.1416.
Place 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 price was really quite unpredictable and directionless except on very short-term time frames. It looked as if 1.1484 was going to be the day’s pivotal level. I was prepared to take a bearish bias if the price rejected 1.1484. Although this did not happen during the London session, my analysis has been correct over the past 24 hours as a whole. I’ve adjusted the resistance level upwards slightly to 1.1486. Little has changed, I still see a very even balance here between bulls and bears with the bears just having the edge very slightly. The pivotal level today is likely to be 1.1486. Watch out for volatility in the British Pound later which could spill over into strange movement in the Euro towards the end of the day.
Regarding the USD, there will be a release of PPI data at 1:30pm London time. Concerning the EUR, the President of the ECB will be testifying before the European Parliament at 3pm.