Yesterday’s signals were not triggered as the price did not reach the resistance level identified at 1.1767 until well after 5pm London time.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1700 or 1.1767.
Put 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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1517.
Put the stop loss 1 pip below the local swing low.
Move 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 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 technical analysis would be hampered today by the fact that the U.S. presidential election was taking place which could produce market volatility as rumours emerge throughout the day. Even after the polls close, it was likely that there will be no clear result for some days.
However, I was ready to take a short trade if the day’s New York close was below 1.1627.
This was a good call as the price has swung quite dramatically in recent hours as early U.S. election results show the race is too close to call and looks likely to come down to a very fine margin.
This uncertain state of affairs in the U.S. could take several days to resolve, and while the result hangs in the balance, we can expect wide and volatile price swings in this currency pair. However, there is still a reasonable chance the result may become obvious today.
The best strategy in this situation will probably be trading any reversals from price extremes, so I would be ready to take a short trade from a bearish reversal at 1.1767, or a long trade from a bullish reversal at 1.1517.
There is nothing of high importance due today concerning the EUR. Regarding the USD, counting and result releases are underway in the U.S. presidential election, and there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time followed by ISM Services PMI data at 3pm.