Yesterday's signals produced a profitable long trade after the bullish pin candlestick rejected the support level at 1.1302, however this gave little more than the minimum 20 pips of profit.
Today's EUR/USD Signals
Risk 0.75%.
Trades may only be taken until 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 1.1357.
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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 Trade
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1290.
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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 we had new higher support just above 1.1300 but it looked somewhat unreliable. I wanted to see the price break above 1.1357 before giving the balance of power to bulls. I did not expect a lot of price movement anyway. This was a fairly good call as the support initially held before breaking down. Apart from adjusting the support downwards to 1.1290, there is little else to say – the price looks very evenly balanced between bulls and bears, and market is quiet and ranging, and this pair is probably best avoided today. I have no directional bias here now.
There is nothing of high importance due today regarding either the EUR or the USD.
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