Yesterday’s signals were not triggered, as there was no bearish price action at 1.2330 or 1.2272.
Today’s EUR/USD Signals
Trades must be taken between 8am and 5pm London time today only.
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2330, or of the descending trend line shown in the price chart below which is currently sitting at about 1.2360.
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.
Yesterday was another day of U.S. Dollar strength, and although it began with the British Pound looking like the weakest major currency, its biggest advance was here, against the Euro. The price cut easily through two support levels, and now has no key support left above the psychologically important 1.2000 area. The chart is dominated by a strong bearish trend line. Despite the long-term trend, it looks as if this pair is going to fall further over the short term, so I have a bearish bias today. Even if the price were to rise strongly, it would be likely to fail at the trend line, which could then provide an excellent opportunity to enter short.
There is nothing due today concerning either the EUR or the USD.