Yesterday’s signals were not triggered, as the bullish price action took place slightly below the support level identified at 1.1290.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
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 1.1357, 1.1381, or 1.1397.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
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Go long 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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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 price looked very evenly balanced between bulls and bears, and the market was quiet and ranging, so I had no directional bias.
The U.S. Dollar sold off broadly yesterday, and the Euro rose a little as the British Pound moved sharply upwards. The resistance level at 1.1357 held, but we have higher support at 1.1325 and adjusted lower support at 1.1276.
The bullishness does not look very strong or convincing, so I see rejections of any of the key levels as potentially good trades in either direction if the rejection is convincing. The price is likely to struggle to get above 1.1400 as we have a cluster of three resistance levels between 1.1350 and 1.1400. A break above 1.1400, if it happens, would be a significantly bullish sign.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.
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