Last Thursday’s signals were not triggered, as there was no bearish price action at either 1.0907 or 1.0920.
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 entry into the zone between 1.0918 and 1.0907.
- 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
This pair rose strongly on Friday when poorer than expected U.S. economic data was released. The price broke up past the resistant zone just above 1.0900 and looks set to continue rising over the short-term to challenge 1.0950 at least. Above that, there is strong resistance at both the long-term bearish trend line (currently sitting at about 1.0980) and of course the big round number at 1.1000.
The price is now above its levels of both 3 and 6 months back, so is technically in a long-term bullish trend.
There is nothing scheduled today concerning either the EUR or the USD.