Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken 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 1.1381, 1.1397, or 1.1440.
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 1.1325 or 1.1276.
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 would take a cautiously bullish bias at new highs after London opens but only until 1.1381 but the risk to reward on offer may not be worth it. This turned out to be correct as the price did rise by a few pips, but as I feared did not move much overall making the trade not worthwhile to take.
The key levels are all holding up and the action seems slightly more bearish now, so a test of 1.1325 is more likely. We really need to see what will happen at 1.1325 or 1.1381 to have a better idea of what will happen next, but I feel that 1.1325 will hold, at least until the data release on the USD due later.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time as well as testimony before the Senate from the Chair of the Federal Reserve.