Yesterday’s signal was not triggered, as the bullish doji candlestick was just above the key support level, so there was insufficiently bullish price action to justify a trade entry.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trade
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1885.
· 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 run.
Short Trade
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1984 or 1.2004.
· 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.
· Remove 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
I was correct yesterday in forecasting that that the price was likely to continue to move down to 1.1984. We now have a more bearish picture, with no key support above 1.1900 and a new area of resistance at and below 1.2000. There is a short-term bearish trend and a long-term bullish trend. The price action during the Asian session so far is suggesting that the price is most likely to consolidate today however, and in the absence of any key data releases scheduled for today, trading is more likely to be relatively quiet in this pair.
There is nothing important due today concerning either the EUR or the USD.