Yesterday’s signals produced a losing trade following the bearish rejection of the resistance level identified at 1.0865 by bearish doji and engulfing candles.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and5pmLondon time today only.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0817.
- 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.
- 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 touch of1.0950.
- 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
Yesterday’s trading saw a very significant development, with the price breaking up past the 1.0865 area which has acted as very pivotal resistance over recent months. It suggests that the price is now on course to move higher over coming weeks.
At present, the price looks weak, as if it is going to pull back. This is confirmed by the strong sell off that was eventually seen yesterday when the price reached 1.0900. However, the London session may see enough buying to push the price up, but we are unlikely to exceed 1.0900 again today.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of CB Consumer Confidence data at 2pm London time.