Yesterday’s signals were not triggered, as none of the key levels were hit during the London session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken prior to 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 1.1929.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1834, 1.1815, 1.1789, or 1.1745.
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 I was generally bullish on this currency pair today, but I doubted that the price would be able to get much above 1.1929. I thought that a bearish reversal there could be a great long-term trading opportunity, at least in terms of reward to risk potential – it would be most likely to be a losing trade.
This was a good call as after initially rising, the price fell back and broke a key support level after the London close, as a more risk-off sentiment began to grip markets later and pushed up the U.S. dollar a little against more relatively risky currencies such as the euro.
The technical picture, apart from the strong resistance beginning near 1.1900, looks messy and mixed. I do not want to make a call on direction today as there are many key support levels close to the current price and mixed price action.
Therefore, I think today’s price movement here will be messy and unpredictable.
The only key takeaway I see from the technical analysis is that there may be an excellent long-term short trade opportunity setting up from a bearish reversal above 1.1900, ideally at 1.1929 – I would be happy to take this trade if it sets up today, but I think it is unlikely to do so.
There is nothing of high importance scheduled today regarding either the EUR or the USD.