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My previous EUR/USD signal on 31st December was not triggered.

(Click on image to enlarge)

Today’s EUR/USD Signals

Risk 0.75%.

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

Short Trade Ideas

• Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1654, $1.1676, or $1.1701.
• 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

• Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1623, $1.1618, or $1.1551.
• 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 published two weeks ago, I thought that the EUR/USD currency pair was likely to see $1.1725 as the pivotal point of the day.

This was a good, accurate call as the low of the London session was just 5 pips lower than that, and it did produce a bullish bounce when reached.

The technical picture now is more bearish to some degree, as the price has continued trading lower. Note in the price chart that we see a short-term symmetrical descending channel, which is a short-term bearish sign. However, the price has nearly reached an area of support which looks strong and important – the zone between $1.1623 and $1.1618.

I see the price as likely to continue to trade lower, on the USD strength which we are seeing now, and to eventually reach this support. If we get a bullish bounce there, a long scalp could be possible but be quick to take profit and get out as I don’t think any bullish move from there will last very long.

There is highly important US data due near the start of today’s New York session, notably PPI which is an inflation metric, and after yesterday’s unchanged CPI data, any surprises here could have a meaningful impact and send the price in an unexpected direction, so watch out for that in case you have a trade open near the time.

There is nothing of high importance due today regarding the Euro. Concerning the USD, there will be releases of PPI and Retail Sales data at 1:30pm London time.

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