Yesterday’s signals were not triggered, although the nearest support and resistance levels broadly held on a very narrow-range day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1718 or 1.1759.
Place 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 1.1676 or 1.1596.
Place 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.
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 although the action was a little bearish, the area of price was supportive. It ended up being a very indeterminate, narrow-range day where the price did not really go anywhere. The price is very flat, and the nearest support and resistance levels held. Although there is a long-term bearish trend, it is weak and showing signs of beginning to turn around. All this adds up to a lot of uncertainty on this pair, so I have no directional bias today. I would be more bullish above 1.1718 and even more so above 1.1759.
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.