Last Thursday’s signals may have produced a profitable short trade following the clear rejection of the resistance level at 1.2385, although the price action was not quite correct technically for an entry.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2385 or 1.2436.
· Place 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 1.2322 or 1.2296.
· Place the stop loss 1 pip below the local swing low.
· 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
The Dollar has weakened over recent days due to the dovish FOMC statement and due to fears over new tariffs. This has benefited the Euro, but the Euro is also relatively weak over the medium term, so the rises against the Dollar have been felt more in GBP/USD and USD/JPY than in this pair. This suggest a short bias, but the pair is in a long-term bullish trend, so it might be better to step aside from this pair right now, or trade rejections of key levels for conservative targets. The most attractive levels for low and high of the day are likely to be 1.2296 and 1.2385. I have a very cautiously bullish bias, due to the long-term trend. Buys would look better above 1.2385 than below that level.
There is nothing due today concerning the EUR or the USD.