Last Thursday’s signals were not triggered as there was insufficiently bullish action when the price first reached 1.1205.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1163.
- Place the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1295.
- Place the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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
We have seen a significant pull back after a broad distributive top just underneath the resistance level at 1.1295. There was solid buying close to 1.1163, from where the price has now risen, and as the British Pound stabilizes, a source of downwards pressure on the Euro is removed.
A period of consolidation with a slight bullish bias is now the most likely scenario between 1.1163 and 1.1295. I will be surprised if the price is able to get beyond 1.1250 today.
There is nothing due today concerning either the EUR or the USD.