Yesterday’s signals might have produced a long trade following the spike down to and bullish rejection of the support level identified at 1.1295. The entry on the hourly chart was a long way away from the level, but it would be in profit. If the price does not continue to rise today above 1.1426 it would probably be wisest to take profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades should be taken before 5pm London time today.
Long Trade 1
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1295.
· 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 1.1426.
· 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
Comments from the European Central Bank on Tuesday caused a follow-through in buying the Euro, driving the price up. At around the time that New York opened yesterday, the ECB made further comments trying to spin away the impact of Draghi’s remarks which had the effect of spiking the price down sharply to support at 1.1295, from where it then bounced and recovered so strongly that the price went on to make new 1-year high prices above 1.1400.
The long, medium and short-term trends are all very bullish. However, the pair now be contained by 1.1426 for a while at least, with the action just after London opens probably being key for providing a clue as to today’s primary direction. A deeper dip and bullish turn could be an excellent buying opportunity as sentiment is still very bullish.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Final GDP and Unemployment Claims data at 1:30pm London time.