Yesterday’s signals were not triggered as the bullish price action took place between the two support levels, however that area did hold as the low of yesterday.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1500.
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 1.1430 or 1.1416.
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 we were seeing the beginning of hints of a major bullish movement but that the price would need to break above 1.1500 first. Long trades might be a good idea if there were strong bounces at the nearby support above 1.1400 and I was ready to take a bullish bias yesterday if we had got such a bounce later after London opens.
This was a good call as the supportive area above 1.1400 held.
The price is still well below 1.1500 and ranging with a slight bullish bias. The outcome of today will probably depend upon whether or not the support at 1.1416 holds. If it holds, we will be more likely to see a bullish break of 1.1500 at some time this week. If it breaks down, then we will just be right back in the range with no bias at all.
I would take a bullish bias today above 1.1500.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.