Yesterday’s signals were not triggered as the bearish price action took place a little way above the resistance level identified at 1.1770.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1826 or 1.1880.
- Place 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 Ideas
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1753, 1.1726, or 1.1684.
- Place 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 the standout support level was sitting at 1.1726 and as long as the support at 1.1726 held up, it should be worthwhile respecting the medium-term bullish trend.
This was a good call as the support at 1.1726 was not even tested once the London session got underway, and the price rose over the day.
Technically it now seems that we have a slightly more bullish picture, with new higher resistance at about 1.1750 which is a major psychological quarter-level. As long as this area of support holds today, we are likely to see the price advance, although the Euro is not currently acting as one of the relatively stronger major currencies.
I think that a bullish bounce from 1.1753, especially if 1.1750 is also hit, will be a worthwhile long trade entry opportunity today. We might well see the next resistance level at 1.1826 hit if that happens.
There is nothing of high importance due today regarding either the USD or the EUR.