Yesterday’s signals produced a long trade entry following the hourly bullish pin candlestick which rejected the former support level identified at 1.1416. This was profitable, but it gave only the minimum 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1416, 1.1455, or 1.1486.
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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1306.
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.
Take off 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 I saw see a very even balance here between bulls and bears with the bears just having the edge very slightly. The pivotal level today was likely to be 1.1486. This was a relatively good call as the price has continued to move down and print new lower resistance, with the support at 1.1416 initially holding and producing a small upwards move. That level now seems to be acting as resistance, which is a bearish sign. However, the price is still within its long-term area of consolidation, so bears should not get too excited yet. I would be prepared to take a bearish bias today if we get a retrace to and reversal at either 1.1455 or 1.1486.
There is nothing important due regarding either the USD or the EUR.