Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1645 or 1.1684.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1589 or 1.1535.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
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 it would probably be a thin trading day so there was not likely to be much opportunity beyond scalping some long pips at a bullish bounce at 1.1589. My bias would become bearish if the price broke below 1.1589 and remained there. I was right about the trading being thin. The price never reached 1.1589 but it does seem to be having some influence as strong support whenever the price gets near it. I still think a bullish retracement is quite likely as the next short-term movement, up to at least 1.1645. A break below 1.1589 would be a bearish sign so that is the level to watch today. There is no real long-term trend, so I have no preference for long or short trades.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.