My previous EUR/USD signal on 1st December was not triggered.
 

Today’s EUR/USD Signals

(Click on image to enlarge)

Risk 0.75%.

Trades must be taken before 5pm London time today only.
 

Short Trade Ideas

• Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1664, $1.1682, or $1.1694.
• Place the stop loss 1 pip above the local swing high.
• Move 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 ride.
   

Long Trade Ideas

• Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1626, $1.1618, or $1.1591.
• Place the stop loss 1 pip below the local swing low.
• Move 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 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

In my previous EUR/USD analysis more than one week ago, I thought that the EUR/USD currency pair was likely to make the resistance level at $1.1613 the day’s pivotal point. In particular, I was looking for a long trade following a decisive breakout above that price level.

This gave a profitable long trade which peaked at about $1.1650.

The technical picture now is more bearish, and this driven by the US Dollar which has been making something of a comeback over recent hours.

Technically, we can see there is a clear pattern of lower lows and a bearish double top rejecting the resistance level at $1.1664. We are also seeing a lower low in the past few hours. The support near $1.1625 looks crucial.

I think the best trade set up which could happen today will be on a short side. A bearish breakdown below $1.1618 looks attractive but will probably be dangerous. A short trade following a retracement and another rejection of $1.1664 would be much better and would form a bearish triple top chart pattern.

This should be a good approach for today, but note that the US FOMC meeting tomorrow could do anything to the price if there are any major surprises.

There is nothing of high importance due today regarding the Euro. Concerning the USD, there will be a release of ADP Weekly Employment Change data and US JOLTS Job Openings data at 3pm London time.

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