Yesterday’s signals were not triggered, as none of the key levels identified have been reached yet.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2187.
Put 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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2107 or 1.2060.
Put 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 the price was likely to range over the day, which was a good and correct call. I said that I would not take a real bullish bias unless and until we saw a daily (New York) close above the bearish inflection points at about 1.2160, which has not happened yet. However, the price did close yesterday in New York at a new long-term high price not far below the area I was concerned with at about 1.2160, which indicates the price is now slightly more likely than not to rise over the coming days.
Overall, it is fair to say that this currency pair is in a bullish consolidation pattern, which remains bullish as long as the price stays above the key support level at 1.2106. The price has been unable to reach 1.2200 for some time now while being supported well above the big round number at 1.2000. There is still weak bullish momentum, but it is not clear that the price can get any higher than 1.2200.
I will take a long trade today if there is a bullish bounce at 1.2107, or a short trade if there is a bearish reversal at 1.2187.
There is nothing of high importance scheduled for today regarding either the EUR or the USD.