Last Wednesday’s signals produced a profitable long trade following the bullish pin candle rejecting the identified support level at 1.0870.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 1pm 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 1.0822.
- 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 of 1.0950 or 1.1000.
- 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
Although the price held up throughout the week following the strong gap up after Macron’s first round victory in the French Presidential election, it has been unable to get past the resistance level at 1.0950. We now have put in a triple top up there, but it does not necessarily look as if the price is going to fall much further. There is minor support at around 1.0850 but the key level if 1.0822 which will probably make itself felt at 1.0825.
There is no long-term trend, but a medium-term bullish trend exists.
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There is nothing due today regarding the EUR, as today is a public holiday in most of Europe. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, preceded by a minor speech from the Treasury Secretary at 12:45pm.