Yesterday’s signals were not triggered, as there was no bearish price action at 1.1430.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Go short following a bearish 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.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1430 or 1.1416.
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 price looked just a little more bullish than it did before, and that if the price could trade above the new key resistance level at 1.1430, it would have a chance to continue up to 1.1500. The price never quite made it to 1.1500 but did continue to rise over the London session, so this was not a bad call. In fact, the Euro was the major gainer yesterday against the Dollar, and the daily close at the end of the New York session was the highest we have seen for about two and a half months. However, the Dollar gained some ground over the Asian session, and the range is back in effect.
This pair is starting to get interesting and is hinting at starting a major bullish movement but would need to break above 1.1500 first. Long trades might be a good idea if there are strong bounces at the nearby support above 1.1400 and I would take a bullish bias today if we got such a bounce later after London opens.
There is nothing of high importance due today concerning either the EUR or the USD.