My previous EUR/USD signal yesterday was not triggered, as it did not reject the support level at $1.1577 cleanly enough to generate a long trade entry.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1640, $1.1662, or $1.1672.
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
Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1592, $1.1576, or $1.1525.
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.
In my previous EUR/USD analysis yesterday, I thought that the EUR/USD currency pair was likely to present at attractive long trade following a bounce at $1.1578.
This trade did not quite set up, but clearly that area of support, which I have now readjusted to $1.1576, has held. There is even a higher support level, which does not look as strong, at $1.1592.
I think the fact that this level has essentially held at $1.1576 makes the technical picture a bit more bullish – this level is looking very pivotal.
If we get a bullish bounce at $1.1576, I will enter a long trade. I am not as optimistic about taking a trade from a bounce off $1.1592.
Again, I think that the area above $1.1640 is going to be hard for the price to penetrate over the short term, especially as we have no high-impact economic data releases scheduled today.
I think any direction movement might be a little restrained today, so it might be wise to be at least a little conservative with profit taking from any long trade. Certainly, be careful if the price gets near to $1.1640.
There is nothing of high importance scheduled today concerning either the Euro or the US Dollar.
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