Yesterday’s signals were not triggered, as there was no bullish price action at 1.1350.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1350, 1.1400, or 1.1445.
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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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Go long following a bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1306 or 1.1256.
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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 picture was looking more bearish, but essentially uncertain. If the Pound stabilized and the support at 1.1350 was retested and held, I would have taken a cautiously bullish bias here later. As it happened, that level broke and the price continued to fall. This makes the picture more bearish still but at present this pair is a sideshow: The weak British Pound is dragging down the Euro, and the real action is in GBP/USD. That keeps EUR/USD bearish, but only weakly so. It looks as if the price is respecting technical levels which makes trading bounces at support and resistance probably the best strategy, with short trades likely to work best. However, we are getting close to 1.1250 which can provide long-term support, so bears should be cautious if the price gets to that area.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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