Last Thursday’s signals were not triggered as there was no bearish price action at 1.0746.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 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 1.0822, 1.0777 or 1.0746.
* 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 Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0950.
* 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
The result of the French Presidential Election sees a centrist candidate succeed to the final run-off vote, and he is a very strong favourite to win. This has boosted the Euro strongly, and the pair has therefore gapped up by quite a large amount. The former resistance levels can now be expected to act as support, and we have seen evidence of this already at 1.0822. However, such weekend gaps to tend to get filled, so a return over the coming days to the support level at 1.0777 could be likely and an obvious level at which to look for a long trade.
The 3-month trend is bullish.
There is nothing due today regarding the USD. Concerning the EUR, there will be a release of German IFO Business Climate data at 9am.