Yesterday’s signals were not triggered as there was no bearish price action at 1.1209.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken 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 1.1295.
- 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 Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1426.
- 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
Comments from the European Central Bank yesterday suggesting that inflationary concerns have replaced deflationary ones were enough to push the market towards seeing the Euro in a new light. The pair broke strongly above a long-term resistance level at 1.1295 and continued to rise. At the time of writing, the price has just made a new 1-year high. Overall this pair looks very bullish and I would not look to go short from any rejection at 1.1365 as it will probably be unreliable; I would wait instead for a possible short from 1.1426.
The long, medium and short-term trends are all very bullish
Concerning the EUR, the President of the European Central Bank will be speaking at 2:30pm London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm.