Last Thursday’s signals were not triggered as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.0572 and 1.0551.
* Place the stop loss 1 pip below the local swing low.
* Move 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 ride.
Short Trades
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0600 or 1.0641.
* Place the stop loss 1 pip above the local swing high.
* Move 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 ride.
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
With the recovery of the USD at the end of last week, the price took a decisive downwards turn, but looks to be finding key support as we approach the London open. Below are not only three key support levels bunched quite closely together, but also a long-term supportive trend line connecting the swing lows of recent months, which looks likely to provide at least short-term support. We have already reached this area of confluence during the Asian session, and the pair seems to have been bought quite strongly so we may not even retest the area today. In any case, we could expect possibly 1.0600 and certain the 1.0650 area to be resistant if reached soon.
There is nothing due today regarding the EUR. Concerning the USD, the Chair of the Federal Reserve will be speaking at a conference at 9:10pm London time.