Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 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 1.1566 or 1.1633.
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 1.1541 or 1.1515.
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 bearish retracement to the next support at least at 1.1541 was looking increasingly likely. This has been what has been happening over the past day, although there are still about 7 pips to go before 1.1541 is hit.
This pair is in a very slightly long-term bearish trend, but volatility over recent months has been extremely low, suggesting the trend is increasingly likely to either take off again, or to reverse. The price is stuck between roughly 1.1500 and 1.1800 so it still could move higher from here, but a downwards retracement to the next support at least at 1.1541 is looking most likely. The question is, how much further will it fall, given all the support levels below? Something dramatic has to happen for the price to break out of this area.
Regarding the EUR, the E.U. Economic Summit will be taking place today. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.