Last Thursday’s signals produced an excellent winning long trade following the hourly doji candle rejecting the support level identified at 1.0525. It looks as if the price still has bullish momentum so it is probably worth holding onto at least some of that position if possible.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0627.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0712 and 1.0724.
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
This pair has been threatening to carve out a bottom close to 1.0500 and turn bullish despite the long-term bearish trend. At the end of last week this finally happened, with the bullish bounce off support at 1.0525 forming the last leg of a Quasimodo / under and over pattern, and from there the price moved up very strongly, boosted by the market’s reaction to the NFP numbers on Friday, which produced a sell-off in the USD.
The price has already hit key resistance at 1.0712 and may be held here, at least for a while, but it pays to be cautious after such a strong bullish move which changed the technical picture quite a lot. However, after the price cools off it may well fall from here, at least temporarily.Concerning the EUR, the President of the ECB will be making a minor speech at 1:30pm London time. There is nothing due regarding the USD.