Yesterday’s signals produced an excellent long trade from the bullish engulfing candle rejecting the identified support level at 1.1615, early in the London session. It would be wise to have taken at least partial profits by now.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trades
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1715 or 1.1680.
· 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.
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 been at the heart of the Forex market for months, continually making new highs and moving strongly upwards, particularly in recent weeks. Yesterday’s FOMC release weakened the U.S. Dollar and so the pair advanced even further, to levels beyond the 2.5-year-high above 1.1700, and even trading above the psychologically important 1.1750 level for a time. Although the price is retracing at the time of writing, this pair looks set for more upwards movement, as there are no strong obvious resistance levels until 1.2000, leaving plenty of blue sky for the price to potentially cut through with relative ease.
There is nothing due today concerning the EUR. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time.