Yesterday’s signals produced a profitable long trade from the hourly pin candle rejecting the support level at 1.2385.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Short entry following a strong bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2436.
Place 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.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2385 or 1.2296.
Place 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.
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
I wrote yesterday that I had a cautiously bullish bias, but I thought that a shallow pull-back or consolidation was likely. The pull-back was deeper than I had expected, but there was a bullish bounce and a rise from the support level at 1.2385, although the bullish recovery has been much stronger in the GBP/USD currency pair. This tells us that the Pound is relatively stronger than the Euro so although there is a long-term bullish trend here, it does not seem to be the best vehicle to trade against the USD right now. Technically, the picture is changed: the price chart below shows how the strong downwards push has knocked the price out of its short-term bullish channel, which is a bearish sign. I have no bias today. Markets in general are quite volatile with large, wide swings, and currencies are being pulled around by strong movements in the stock market to some extent.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm.