Yesterday’s signals were not triggered as the daily high was half a pip short of the resistance level identified at 1.0825. With the close approach and rejection, it seems that level has acted as good resistance and may continue to do so.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must only be entered between 8am and 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0712.
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.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0825 or 1.0865.
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.
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 has quite a lot of bullish momentum but it slowed yesterday, although not by a significant amount – the bullish rhythm remains intact and the bullish channel shown in the chart below remains intact.
It feels as if the price is due a drop at least to the bottom of the channel. It should be noted that the high just below 1.0825 is a very pivotal level that has provided both support and resistance over several months, and is the start of a key recent swing high area. Therefore, it would not be a great surprise if we get a bearish pull back or even major reversal here. For that reason, I ignore the support level drawn in the chart below at 1.0781.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Unemployment Claims at 2:30pm London time, followed 15 minutes later by a speech from the Chair of the U.S. Federal Reserve.