Yesterday’s signals were not triggered, as the bearish price action took place about 10 pips above the resistance level identified at 1.1416.
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 1.1425, 1.1455, or 1.1486.
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 1.1306.
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 1.1416 now seemed to be acting as resistance, which was a bearish sign. However, I noted that the price is still within its long-term area of consolidation, so bears should not get too excited yet. I was looking for a return to 1.1455 before taking a bearish bias. I should have looked to 1.1425 but overall this was a good enough approach to stay out of trouble.
The Forex market is generally very quiet, and there is little change to yesterday’s situation. I would be prepared to take a bearish bias if we get a retrace to and reversal at either 1.1425 or 1.1455.
There is nothing important due regarding either the USD or the EUR.