Yesterday’s signals were not triggered as none of the key levels were reached during the specified time.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
⦁ Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1131 or 1.1198.
⦁ Place 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.
⦁ Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
⦁ Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1107 or 1.1063.
⦁ Place the stop loss 1 pip below the local swing low.
⦁ Adjust 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 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 I would again look to take a bullish bias if either we got a bullish bounce during the day at 1.1128 or a price above 1.1168 at today’s New York close.
Although I was looking to the bullish side, as the price area just below 1.1200 was a long-term pivotal zone, I also noted the possibility of a bearish reversal there starting a meaningful move down.
This was a good call as it was enough to keep out of any problematic long trade, and we did see a substantial move down from the pivotal area near 1.1200.
The technical picture is now more conflicted, with bulls and bears fighting it out in a zone between the support at 1.1107 and 1.1131. I think there is more potential today on the long side, but I would want to see the price stay above 1.1131 for a couple of hours before entering any long trades on a shorter time frame.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.