By: DailyForex.com
Last Thursday’s signals were not triggered as there was insufficiently bullish price action at 1.0712.
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 1.0648 or 1.0600.
* 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 1.0712 or 1.0746.
* 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 bearish momentum seems to be continuing, even though the bearish trend line has not fully held. There is no clear sign of bottoming out yet although there was buying when the price approached close to the probable support level of 1.0648.
The price is still above its level of 3 months back, so the situation is mixed and confused. I prefer to see the situation stabilize before trading this pair, although the support at 1.0600 which is confluent with a whole number and a long-term trend line does look attractive.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of ISM Manufacturing data at 3pm London time.