Last Thursday’s signals might have given a losing long trade from the support level identified at 1.1161.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.10139.
- 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 1.1209.
- 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 price built a base towards the end of last week, carving out a new supportive short-term trend line and a new support level at 1.1139. From here, the price rose steadily on Friday to test the next resistance level at 1.1209. So far, this level has held. The higher time frames were suggesting a bearish turn from the long-term resistance at 1.1295, but it is looking as if the turn is taking a very long time to happen. The price may spend some time above 1.1209. Any break above 1.1295 would be a very bearish sign.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.