Yesterday’s signals were not triggered, as there was no bullish price action when either of the support levels identified at 1.1790 or 1.1760 were first reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8 am and 5 pm 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 1.1752, 1.1779, or 1.1803.
- Put 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.
- Remove 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 Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1726 or 1.1684.
- Put 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.
- Remove 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 medium-term bullish trend was surviving and the support at 1.1790 looked likely to be today’s pivotal point. I also thought the price would rise over the day, which I was wrong about. However, 1.1790 as a pivotal point was a good call as after breaking below that level, the action over the past day was firmly downwards.
Yesterday’s Forex market action was dominated by a weakening of both the British Pound and the Euro even more than it was about strengthening in the U.S. Dollar. This is partly caused by an increasing prospect that a comprehensive trade deal will not be achieved between the U.K. and the E.U.
The action here was showing a medium-term bullish trend but that is in serious doubt now, with the price seeming to have got established below the big quarter-number at 1.1750.
I think the price is now is a more ranging environment and is likely to seesaw backwards and forwards, so I have no probability for overall direction.
There is short-term bearish momentum at the time of writing, so I think it is likely that 1.1726 will be reached.
I will take a short from a bearish reversal at 1.1752 or a bullish reversal at 1.1684 if either of these situations set up.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of PPI data at 1:30 pm London time.