Yesterday’s signals were not triggered, as there was no bullish price action at 1.1233 or 1.1214.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1227 or 1.1277.
- 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 1.1150.
- 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 wasn’t able to make much of a forecast yesterday as I thought the technical picture was uncertain, but I noted that there was a long-term bearish trend in this currency pair. This turned out to be a timely reminder as the price has turned more bearish, falling within a bearish wedge or channel drawn within the price chart below. The price has not reached truly significant new lows, but the invalidation of all the support above 1.1150 and the printing of new lower resistance at 1.1227 which has been carved out by recent price action does suggest that the price is set to fall further. I would take a bearish bias if the price makes a strong bearish reversal off 1.1227 later, or if the price can trade below the lower trend line for a couple of consecutive hours.
There is nothing important due today concerning either the EUR or the USD.