Last Monday’s signals gave a winning long trade following the inside bar rejecting the identified support level at 1.0572.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and5pmLondon time today only.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.0600, 1.0572 or 1.0561.
- 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 Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of1.0641.
- 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
There has been a significant development, with the price reacting bullishly earlier in the week after reaching an area of confluent supportive horizontal levels and a long-term supportive trend line. The upwards movement has been slow, with deep pull backs, but it looks reasonably solid having flipped the level at 1.0600 from resistance to support. It looks probable that the price will continue to at least 1.06300, when it will begin to run into a bearish trend line and a resistant area.
There is nothing due today regarding the EUR. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.