Yesterday’s signals were not triggered, as none of the identified support or resistance levels were reached yet.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today.
Short Trade Idea
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2187.
Place 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 Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2087, 1.2039, or 1.2004.
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 it was likely that we would not see higher prices over the day and would instead get a consolidation or bearish retracement now.
I thought that the key thing to watch for would be whether the support at 1.2087 continued to hold.
This was a good call as the price consolidated yesterday a little ways above the support level at 1.2087, before eventually rising during the Asian session as major currencies came back a little against the U.S. dollar.
No key levels were reached, and the price is now in a slightly bearish multi-day consolidation pattern between 1.2087 and 1.2187.
There are two key things to watch for today: whether the price ends the New York session later above 1.2150 (a bullish sign) or even 1.2187 (a very bullish sign), or below 1.2087 (a bearish sign). It may be wise to stand aside until one of these developments takes place, and there is a good chance that this consolidation range will hold today, as the market is awaiting major news impacting the euro. Tomorrow will see the ECB’s monthly policy release, and new high-level talks between the E.U. and the U.K. on a trade deal will begin later.
This means that the best strategy today would probably be to trade reversals at these key levels on short time frames.
There is nothing of high importance scheduled for today regarding either the EUR or the USD.