Yesterday’s signals were not triggered as the price action was not right, but the resistance level identified at 1.1937 acted as the high of the session to the pip, so was extremely accurate on a strong down day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may be entered before 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1875 or 1.1897.
Put 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.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1817 and 1.1813 or the next touch of 1.1794.
Put 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.
Take off 50% of the position as profit when the price reaches 25 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 took a bearish bias yesterday, and this paid off very well, with the down move being the dominant factor in the Forex market. The Dollar strength has resumed, and the Euro is one of the weakest currencies. My resistance level at 1.1937 pinpointed the bearish turn to the pip. The Dollar has long-term strength.
The former support levels were cut cleanly and have probably been turned to new resistance, which has been confirmed by a failed retest in the case of 1.1875.
Despite the long-term bearish trend, we are quite likely to not see any significant further move down today, as the price has reached and seemingly bottomed out at a key cluster of support levels close to 1.1800. If the price should retrace to 1.1875, this could give a very nice opportunity for another short trade entry.
Concerning the EUR, the President of the ECB is speaking at 1pm London time. Regarding the USD, there will be a release of Building Permits data at 1:30pm followed by Crude Oil Inventories data at 3:30pm.