EUR/USD Forex Signal
|Yesterday’s signals produced a short trade entry when the pin candlestick rejected the resistance level at 1.1397. This has reached the minimum profit and may have further to run into more profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trades
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 that the Pound was quite likely to rise again so the Euro may get some buoyancy from that yet was quite likely to struggle to break above 1.1400 again. This was a perfect call and is exactly what happened, with a nice pin candlestick rejecting the 1.1400 area before the price turned down. There is short-term bearish momentum so it looks as if we will see lower prices. However, the market is probably going to wait for the major U.S. GDP data due later as New York opens, which could push the price anywhere with a spike or start a firmer trend. Unless the data is a big surprise, I see the 1.1400 and 1.1275 areas as likely to continue to hold, so fast reversals at either end would be likely to be the best approach if that is how the data plays out.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Advance GDP data at 1:30pm London time.
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