Yesterday’s signals were not triggered, as the bearish price action took place a little way above the resistance level identified at 1.1566.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may be entered before 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 1.1515 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 H1 time frame immediately upon the next touch of 1.1480 or 1.1444.
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 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. A downwards retracement to the next support at least at 1.1541 is looking most likely. This was a good call as the price has continued to move to new lows and expand the trend. I noted there were plenty of support levels above 1.1500 that might mute any move down, but the price has already managed to get below the psychologically important level at 1.1500. Momentum is with the bears and if the price can go on today to break below the next support at 1.1480 I will again take a bearish bias.
Regarding the EUR, the E.U. Economic Summit will be taking place today. There is nothing important due today concerning the USD.