Yesterday’s signals were not triggered, as there was no bullish price action at 1.2260.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2260.
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.
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
Yesterday I saw the support level at 1.2260 as a pivotal point, and the price reaction there as likely to indicate whether we are going to see the long-term, multi-month price range survive, or break down to produce a major trend change from bullish to bearish. The price easily broke below 1.2260 and the psychological level just below that at 1.2250, which is a bearish sign, and is now below its price of three months ago. We have seen a little support at the round number of 1.2200 in recent hours, but there is no key support between here and 1.2005, so the price has room to make a strong breakout. The U.S. Dollar is strong everywhere and the Euro has been one of the major losers against it. For these reasons, I have a bearish bias. However, its important to say the price action during the late Asian session has been bullish so there are early signs that we may see a bullish retracement today.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence at 3pm London time.