Last Thursday’s signals were not triggered as the bullish price action took place below the support level identified at 1.1163.
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 1.1158.
- 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
The price continued its strong fall on Thursday, following through from the bearish rejection of the resistance level at 1.1295, breaking below support at 1.1163, but then turning bullish and recovering quite strongly on Friday, re-establishing the former support level just a few pips below 1.1158. The level at 1.1295 is long-term resistance, so we may now be seeing the price make a further downwards movement. This pair can take its time going anywhere, so this could take a few days before the direction becomes obvious. If the price can get established above 1.1295, that would be a very bullish sign, but bulls must be cautious in that area as there is plenty of resistance between 1.1300 and 1.1600
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There is nothing due today concerning either the EUR or the USD.