Yesterday’s signals were not triggered, as the resistance level at 1.2260 was never reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken 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 1.2260.
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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.
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 had a bearish bias. Although the price did fall initially, seeming to print new resistance at 1.2220, it then turned around to rise and invalidate that level. What was important from a technical perspective though was that the price never even reached the psychological level of 1.2250, let along the higher key resistance level just above that at 1.2260. The price has fallen again during the Asian session and looks like it is heading lower. The technical picture and 3-month price trend are both bearish. There are no key support levels above 1.2005. The round number at 1.2200 acted as a floor yesterday, with the price making a couple of downwards stabs which were quickly rejected below that. So, it looks as if the price will fall today, but 1.2200 should be watched as it might turn out to become a double bottom. Nevertheless, I have a bearish bias.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.
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