Yesterday’s signals gave a long trade entry following the doji/pin candle on the hourly chart rejecting the support level identified at 1.0881, but unfortunately it did not give the minimum 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken 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 1.0822.
- 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 entry into the zone between 1.0907 and 1.0920, or following the next touch of 1.0950.
- 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
The high amount of activity in this pair continues, with yesterday seeing a reasonably strong continuation of the sell-off from 1.1000 as attention now turns to how the new French President faces a great challenge in solving France’s structural problems. The short-term outlook remains bearish, as the price is now consolidating and looking held below a new zone of resistance confluent with the round number at 1.0900. There are no key support levels until 1.0822, so there could be a further meaningful fall downwards movement during the rest of the week.
Concerning the EUR, the President of the ECB will be speaking before the Dutch Parliament at 1pm London time. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm.