Yesterday’s signals were not triggered, as unfortunately the bullish bounce took place a little way below the support level I had identified at 1.2051.
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 1.2187 or 1.2260.
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 1.2087, 1.2039, or 1.2004.
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 previous day’s candlestick not only hit and closed at a new 2.5 year record high price, a very bullish sign in itself, but it also had a very wide daily range and closed near its high, which were further signs that the price was considerably more likely than not to rise even higher today.
This was a great forecast as the price did rise higher over the day, closing well above the next higher round number at 1.2100 and again making a new 2.5 year high.
The strong bullish trend is continuing with the euro, one of the strongest currencies, while the U.S. dollar is in retreat everywhere. When the U.S. dollar is trending this clearly into “blue sky”, it makes for great Forex trend trading conditions.
I see no reason to stop being bullish as the odds continue to suggest a further rise in price is likely today, and there is no key resistance until 1.2187 so the price has some meaningful room to rise.
I am generally bullish and will happily take a new long trade from any bullish bounce at an identified support level.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by ISM Services PMI numbers at 3pm. There is nothing of high importance scheduled today concerning the EUR.