Last Thursday’s signals produced a losing long trade following the bullish engulfing candle rejecting the support level identified at 1.0525.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0572, 1.0544 or 1.0525.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0667.
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
The price continued to break past the anticipated support last Thursday at 1.0525, but the chart below shows that a widely spaced double bottom was made at the key whole number of 1.0500. Since then, the price has mostly moved up quite strongly, but has faltered as it came close to the minor resistance point at 1.0630.
It looks as though the price will mostly hold up above support over the short term, probably with quite choppy action.
There is nothing due today concerning either the EUR or the USD.