Yesterday’s signals were not triggered, as there was no bearish price action at 1.2347 or 1.2384.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2436.
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Put 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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Go long following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2347 or 1.2304.
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Put the stop loss 1 pip below the local swing low.
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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.
Yesterday I wrote that I had a bullish bias, that the price seemed likely to move up again, and that technical levels were likely to be respected. I’ve had to adjust the resistance to 1.2390, but all of this looks to have been true over the past 24 hours. Although there is a long-term bullish trend and the price has been moving up, the Euro has been considerably less bullish than the British Pound, suggesting that its not truly ideal to be trading long here, although it is certainly better than being short.
The price is now again testing the resistance at 1.2390. It is too close to use as a level now, and it is looking more likely that this level will break rather than hold, so I have a weak bullish bias today. If the level does hold, it is likely to signify a deeper bearish pull-back.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.
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