EUR/USD Signal Update
Yesterday’s signals were not triggered as the doji candle rejecting the resistance level identified at 1.0712 would not have triggered a short trade until the end of the London session. Note however that the resistance level held well.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0625.
Put 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.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0712 and 1.0725.
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.
Take off 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
We see the beginning signs of a possible bullish reversal. However, we can draw a new bearish trend line, as shown in the chart below, which is still holding the price down. Additionally, there is an area of resistance just above 1.0700 which held yesterday and it looks strong, so the price might find it difficult to break up.
The market in general is not great for trading right now, with a lot of small indecisive moves. Having said that, shorting this pair would appear to be a valid trend trade.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.