Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1276 or 1.1322.
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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1150.
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 the price had turned around quite sharply at the low below 1.1200 and has continued to rise from there, so it looked likely that we were not going to see these lows again, at least not for a while. I thought that the price would now rise slowly before meeting resistance at the psychological level of 1.1250 or the next resistance at 1.1276. How the price reacts there would tell us something.
This was a good call as the price advanced slowly over the day before being capped just a few pips below the resistance level at 1.1276. It may well turn bearish here – it is anyway very likely to be the pivotal level for today, so if the price can trade above it for a while, it will be a bullish sign. The problem for traders is that there is a lot of big news due today: first U.S. inflation data which could cause a spike if it is surprising, but even more seriously, the U.K. Parliament’s vote on the Brexit deal this evening is likely to cause big swings in the Pound which could also affect the Euro, although the big move in the Pound over the last day has not, which is interesting.
Overall, I cannot forecast today’s direction, I am just watching the winds, but an early break above 1.1276 might yield some long pips before the news.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of CPI data at 1:30pm London time.