Yesterday’s signals identified the high of the day very precisely, at 1.1547, but the bearish price action there probably wasn’t right for a short trade entry, unfortunately.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today
Short Trades
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1480 or 1.1547.
- Put 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 Trades
- Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1444 or 1.1400.
- Put 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.
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 short trades still looked like a good bet. The longer that the resistance at 1.1527 held, the more bearish I would become, but I had a feeling this movement will not happen until tomorrow. I was partially right, short trades would have been a good outcome, but the downwards move took the form of a sudden fall from a spike which did not look like following through, so it was hard to jump onto this trade even though the resistance level at 1.1547 held nicely.
This pair is in a long-term bearish trend and short trades here look like being generally the best Forex opportunity around right now in the market. The price has fallen during the Asian session and is currently going on to test the support level at 1.1444. If the price can break below that, a further move down to at least 1.1400 will be very likely to happen today, so I have a bearish bias below 1.1444.
There is nothing important due today concerning either the EUR or the USD.