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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2369 or 1.2436.
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.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2284 or 1.2252.
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.
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 the price now seems to have based bullishly off the support at 1.2284 and is poised to rise gently. However, the bullish action does not look strong or convincing, so a weak consolidation was quite possible over the short term. In fact, the price rose to make a new swing high while continuing to look mildly bullish. There is no change at all to the technical picture, which sees well-defined support and resistance levels nearby comfortably containing the price. I maintain a mildly bullish bias today, in line with the long-term bullish trend.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of CPI data at 12:30pm London time.