EURUSD: Remains bullish above 1.1293
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1293.
Place the stop loss 1 pip below the local swing low.
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 two days ago, the price made a strong bullish breakout on high volatility, which placed the odds in the bulls’ favour, and the odds remained so for another day at least. Therefore, I took a bullish bias if the price could make a bullish bounce following a retracement to 1.1293. No such retracement happened, but I was right about the bullish direction of the day.
Although the movement is very slow, the odds still favour the bulls here, and I think we are likely to see new long-term higher prices over the course of today, probably at the time the U.S. data is released or after that. Again, I would be ready to take a specific bullish bias if we get a bullish bounce after a retracement to 1.1293.
Concerning the EUR, the President of the ECB will be giving a minor speech at 9:15am London time. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm.