Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must 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 1.1455, 1.1486, or 1.1540.
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 1.1378, 1.1372, or 1.1350.
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 the line of less resistance was upwards, but I had little confidence in this move for the time being. This was a good call as the price has continued to try to rise, but so far has been unable to even reach let alone break past the resistance level at 1.1455.
The U.S. Dollar is weak everywhere and this is helping the price rise here. I think today a break above 1.1455 is quite likely to happen and it would be a bullish sign if it does. However, we have a major FOMC release due later which is likely to cause some volatility in the U.S. Dollar and this could push the price anywhere so if the bullish break comes before that release, don’t put too much faith into it.
I would take a bullish bias after the FOMC release if the price rises then to trade above 1.1455 after being below it.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time, followed by the FOMC Press Conference half an hour later.