EUR/USD Signal Update
Yesterday’s signals were not triggered as there was insufficiently bullish price action t 1.0675.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0565.
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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0796.
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.
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
The medium-term upwards trend has continued, although the newest support level at 1.0675 which I thought would act as a base has been wiped out as we have seen a recovery by the USD. Nevertheless, the patterns of higher lows has held so it makes sense to be mildly bullish at least over the medium term.
Regarding the EUR, the ECB will release its Minimum Bid Rate at 12:45pm London time, followed later by the ECB press conference at 1:30pm. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm followed by Crude Oil Inventories at 4pm.