Last Monday’s signals were not triggered as there was insufficiently bullish price action at any of the key support levels which were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered prior to 5pm London time today only.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2200, 1.2227, or 1.2277.
Put 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 1.2147, 1.2112, or 1.2060.
Put 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 last Monday that action was very flat, so I was not really interested in trading this currency pair.
I thought scalping off the key levels might have been the best approach, but this would not have been very fruitful.
I was correct to stand aside from this pair as it has moved very little this week and just consolidated.
Unfortunately for traders, this flat, aimless consolidation is likely to persist today. However, the FOMC release due later towards the end of the New York session is likely to inject some volatility and maybe also directional movement into the U.S. dollar, so it could become more interesting to trade after that point.
In the meantime, I frankly do not see any good likely opportunities here and would stand aside from trading this currency pair.
After the FOMC release, I see the best opportunity which might set up as a long trade from a bullish bounce that might happen at the support level of 1.2060.
There is nothing of high importance scheduled today regarding the EUR. Concerning the USD, the FOMC will release a statement at 7pm London time followed by the usual press conference half an hour later.