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.
Short Trade
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.
EUR/USD Analysis
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.