EUR/USD Signal Update
Yesterday’s signals produced a losing short trade following the bearish pin candlestick rejecting the resistance level at 1.0712.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0772 or 1.0712.
Place 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.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0865.
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.
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
This pair got a strong boost yesterday when one of President Trump’s economic advisors commented publicly that the Euro was undervalued. Later comments by President Trump himself also had a bad effect on the U.S. Dollar and drove the price higher still. The overall effect is to create a persistence in the medium-term bullish trend which had looked to be in danger of breaking down.
The main question now is whether the new potential support levels which were created yesterday will hold the current pull back. The first such level is close, at 1.0772, and it does not look likely to be very strong. The next level below, 1.0712, is very confluent with a broken trend line and close to a round number, so if reached soon will I expect be likely to provide support.
The next major resistance above, at 1.0865, can be expected to be very strong.There is nothing due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, ISM Manufacturing PMI at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.
