EURUSD: Bullish daily pin bar hints at reversal
Yesterday’s signals were not triggered, as there was no bearish price action at 1.0961.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1030.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Idea
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0959.
Put the stop loss 1 pip below the local swing low.
Adjust 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 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 I would be prepared to take a bearish bias if we had gotten a firm bearish rejection of 1.0961 from 9am London time. The price did get back to that level during the New York session, but there was no bearish price action to justify a short trade entry there.
The daily chart saw a daily pin bar candlestick form, suggesting a bullish reversal, or at least a significant bullish retracement into the long-term bearish trend, is on the cards, with the price seeming to have gotten established above the support level at 1.0959.
I would take a bearish bias if we get a further retracement to 1.1030 which then fails and makes a bearish price action reversal, in line with the long-term trend.
There is nothing of high importance due today concerning either the EUR or the USD.