EUR/USD Forex Signal
|Yesterday’s signals were not triggered as there was insufficient price action at both 1.1325 and 1.1357, but 1.1325 did act as the low of the day to the pip.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1381, 1.1397, or 1.1440.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1325 or 1.1276.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 as the bullishness did not look very strong or convincing, so I saw rejections of any of the key levels as potentially good trades in either direction if the rejection is convincing. This was a good call as the price was unable to get beyond any of the key levels and remain there.
The picture now is very slightly bullish as the support at 1.1325 is holding at the time of writing. If it continues to hold as the London session gets underway then we are quite likely to see the price continue upwards and perhaps reach 1.1381. However, there is a lot of resistance to break between there and 1.1400 before the price can move significantly higher.
Regarding the EUR, there will be a release of French Flash Services PMI at 8:15am London time followed by the German equivalent and the German Flash Services PMI 15 minutes later. Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm.
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