Yesterday’s signals produced a losing short trade from the hourly pin bar which rejected the resistance level at 1.1358.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1477.
- 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 1.1397 or 1.1358.
- 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 until the FOMC release, which would hopefully give some direction, scalping rejections of either key level was likely to be the best approach. This was a good call as the resistance was rejected but only gave a few pips, then the FOMC release has given a much more bullish direction, sending the price up quickly by approximately 100 pips as they ruled out anything more than 1 rate hike before 2021. Although we have had a bearish pullback, and other currencies such as the Yen and Gold are advancing against the Dollar more firmly, the upwards move looks likely to continue over the course of today. I would take a bullish bias if we get an hourly close above 1.1450 during the London session today, until 1.1475.
Concerning the EUR, the EU Economic Summit is taking place today. There is nothing due today regarding the USD.