Yesterday’s signals were not triggered, as there was no bearish price action at 1.1425.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1455 or 1.1486.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1424, 1.1378, 1.1372, or 1.1350.
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 I thought that that 1.1425 was quite likely to hold. I was wrong, the price broke above that level and now seems to be using it as new support which is a bullish sign. Movements here and in the rest of the market are still quite small so I remain cautious, although there is no doubt the Euro is being bought a little at present. The line of less resistance is upwards, but I have little confidence in this move for the time being.
A break above 1.1455 would be a very bullish sign, as it would suggest we might then get a test of long-term major key resistance around 1.1500.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.