Last Thursday’s signals produced an excellent short trade following the bearish doji candle rejecting 1.1250. If the price does not break below 1.1164 convincingly within the next few hours, it would be an excellent idea to take some profit.
Today’s EUR/USD Signals
Risk 0.50%.
Trades may be taken between 8am and 5pm Frankfurt time today.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1146 or 1.1065.
- 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 Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1185, the bearish trend line shown in the chart below currently sitting at about 1.1225, or 1.1250.
- 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 has put in a major bullish triple top rejecting the obvious and clear psychological resistance at 1.1250. The tops are connected by a bearish trend line, and the continuing downwards movement has established new resistance at 1.1185. However, the price has now reached a zone of probable support where it might resume bullishly, starting at 1.1164, but bulls will probably be on safer ground if they wait for 1.1185 to break before entering any new long trades.
As both London and New York are on holiday, trading is likely to be very quiet today.
There is nothing due today concerning the USD: it is a public holiday in the U.S.A. Regarding the Euro, the President of the ECB will be testifying before the European Parliament at 2pm London time.