Yesterday’s signals were not triggered, as there was no bullish price action at 1.1570.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken until 5pm London time today, during the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1596 or 1.1648.
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 touch of 1.1496 or 1.1467.
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 wrote yesterday that I had no directional bias, and this was a fairly good call as the price again seems to have found support around the 1.1550 area. However, the picture is looking more bearish as resistance levels continue to hold, with the price now capped just under 1.1600. We are now in a position where bulls will be encouraged above 1.1600 and very encouraged above 1.1648. Alternatively, if the price cannot get above 1.1600, it will look like bears will be able to push the price down for another test of the 1.1550 area. There is a long-term bearish trend, so it seems probable that the price has further to fall. However, it is worth noting that other currencies, such as the British Pound, look weaker than the Euro. Additionally, the area around 1.1500 could well be very supportive, as it is a major psychological level and also has a cluster of support levels just below it. I have no directional bias today.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.