Yesterday’s signals were not triggered, as although there was a strongly bullish bounce at the support level identified at 1.1535, the candlestick formation was not bullish enough to trigger an entry.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1604 or 1.1645.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1535.
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 a break below 1.1589 would be a bearish sign so that is the level to watch today. This happened, and the price continued down to the next support level at 1.1535 so it was a good call, although I had thought that a move up was more likely. We have seen a reasonably strong bullish retracement, but this has hit a new lower resistance level at 1.1604, and a bearish structure of lower highs and lower lows dominates the price chart below. Therefore, I remain weakly bearish as long as the price remains below 1.1604, at least until 1.1535 is hit again. A sustained break above 1.1604 would be a bullish sign, so that is the level to watch today.
There is nothing important due today concerning either the EUR or the USD.