Yesterday’s signals were not triggered as the bearish price action took place just a few pips above 1.1185 before the price fell strongly, although the area was accurate resistance.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1082.
- 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 1.1162.
- 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
I wrote yesterday that 1.1164 and 1.1185 were going to be crucial levels and the pair respected them very closely in both direction, initially rising from 1.1164 in early trading before topping just a few pips above 1.1185 and then falling again strongly, breaking down past the supportive area below. Although this pair is in a long-term bullish trend, the pull-back has really deepened and turned into more of a medium-term bearish trend. There is still plenty of support between here and 1.1000 however, and at some time before that price is reached, we will probably see another reasonably strong upwards wave in line with the wider trend. The action so far suggests the price is likely to range today, or fall further.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.