Last Thursday’s signals were not triggered as there was no bullish price action at 1.0630.
Today’s EUR/USD Signals
Risk 0.50%.
Trades must be entered between 8am and 5pm London 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 1.0615.
• 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 touch of 1.0712.
• 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 continues to consolidate within the triangle formation shown in the chart below. The pair is not in a long-term trend. However, the base below looks very solid, with the rise supported by a key long-term bullish trend line as well as by a short-term one, as can be seen in the chart below. There are several support levels below the triangle, as well as additional support at 1.0615. There has been plenty of selling from 1.0675 but I do not see that as a key level.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Building Permits data at 1:30pm London time.