Yesterday’s signals were not triggered, as there was no bearish price action at 1.1316.
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 1.1325 or 1.1397.
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 1.1250.
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 we are likely to see a slow downwards drift in this currency pair going forwards, as the Euro is not seen as a very risky currency any more. I thought that 1.1316 was likely to be the pivotal level of the day but I was wrong, it was more like 1.1325. It was a quiet day with little price movement here or almost anywhere else.
It makes sense to be looking for short trades between 1.1325 and 1.1250 – this looks like a classic slow bearish pattern over the long and medium-term periods. This condition will probably persist until the U.S. data release later which might change things, at least over the short-term.
Concerning the EUR, the President of the ECB will be giving a minor speech at 8am London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm.