Yesterday’s signals were not triggered, as none of the key levels were 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 1.1885 or 1.1863.
· 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 ride.
Short Trades
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1959, 1.1984, or 1.2004.
· 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 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 it was likely to be a relatively quiet and consolidative trading day in this pair and that was correct, although the price did fall during the early part of the London session by a few pips. We again have price action which is suggestive of consolidation today, which would not be a surprising outcome as there is again little news due of any major importance. Technically, the price is caught between several fresh resistance levels above at 1.2000 and below, yet there is also support below 1.1900. It is difficult to say what is going to happen next beyond bounces at key levels being more likely than breaks. There is still some bearish momentum, however.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.