Yesterday’s signals produced a short trade following the bearish rejection of the resistance level identified at 1.1715, which unfortunately produced just a little less than the minimum 20 pips of profit and so became a losing trade.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
- Long entry following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1766 or 1.1650.
- 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 Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1838 or 1.1891.
- 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
The price action is now presenting an unclear situation. We have some relatively strong buying from the 1.1700 area which suggests that the long-term bullish trend may be about to get going again. However, the structure is still not looking confidently bullish. Much will probably now depend upon the new support level at 1.1766. There are a few items of key U.S. economic data due later that are likely to also have a significant effect upon the price, so although speculative long trades aligned with the long-term trend always have positive odds, it might be better to wait on the side-lines for a while. It looks as if the greatest Forex action is now here in this currency pair.
There is nothing significant due today concerning the EUR. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change Forecast at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, Crude Oil Inventories half an hour later, and then finally Janet Yellen opening a conference at 8:15pm.