Yesterday’s signals were not triggered, as the bearish price action took place slightly above 1.1486.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1486.
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 1.1393 or 1.1355.
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 I thought this pair as likely to be interesting short if the U.S. Dollar strengthens later, although it is quite probable this won’t happen until the FOMC releases tomorrow. I was not convinced of direction. This was a good call as yesterday’s action was inconclusive, but the price fell as the Dollar strengthened after the resistance level had been reached.
The picture is very weakly bullish over the short to medium-term, but the Euro is not one of the stronger currencies, so it is still the short side that probably has the most potential. It is likely that action will be subdued ahead of the FOMC release later. That release may get the price moving again, and if it is hawkish, there will probably be downside potential.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time.