Yesterday’s signals were not triggered, as the price never reached 1.2187.
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 1.2150.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2005.
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 25 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 was correct to take a bearish bias yesterday, although the price did bounce bullishly when New York came online. However, the bearish movement resumed pretty fast. What is most significant about that is the medium to long-term trend in that direction, and the fact that the British Pound is now looking more bullish than the Euro. This pair seems to be moving the most smoothly, and it is again close to its recent swing low after moving down again during the Asian session. Everything points to still lower factors. It is possible that 1.2000 might be reached today, which is a very important psychological number, so it might provide some support, at least for a while. I maintain my bearish bias on this pair.
There is nothing due today concerning the EUR: it is a public holiday in Germany, France and Italy. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.