Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the nearest supportive trend line at about 1.1725 or at 1.1650.
- 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 is enjoying the kind of strong trend which traders dream about, the kind where it is possible to go long on every major swing against the trend and make money almost every time. The price made a new 2.5-year high and fell from the top of the clear bullish channel which is dominating the picture, as shown in the chart below. There are no obvious horizontal support levels until 1.1650, but the nearest supportive trend line is likely to provide good support in the current environment, so would be a sensible place to look to go long if there is a bounce when it is next reached.
I do not see any reliable resistance until the large round number at 1.2000, and as the price moved so quickly through the area underneath this level when it was last reached 2 years ago, I see a continuing fast move up as likely unless there is a major change in sentiment.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.