Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Trades may only be entered before 5pm London time today.
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2238.
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 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.
As Europe opened yesterday, this pair was looking as if it were going to move up, consolidating bullishly just below a short-term trend line which marked the upper limit of a consolidating triangle. This triangle can still be seen in the price chart below. The bullish breakout failed, and the price moved down heavily from this failure, falling a long way. Recent hours have seen the pair sell from the psychological level at 1.2250 and from a new resistance level at 1.2238. Despite the long-term bullish trend, these are very bearish signs, and the absence of any key support until the 1.2000 area suggest that the price could still fall much further soon, so I have a short-term bearish bias.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.