Last Thursday’s signals were not triggered as there was no bearish price action when the price reached 1.1388.
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 touch of 1.1388.
- 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 the bearish trend line which is currently sitting at about 1.1436.
- 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
There is still a bullish pattern with recent new 1-year high prices being made. However, the trend line which was hit on Friday shown at the top of the chart below is a very long-term bearish trend line which may hold the price within this historically very resistant area. Despite that, there is a lot of bullishness and we are still seeing new “stair-step” levels of support being created, for example 1.1388 which was formerly resistance. I maintain a bullish outlook, but am cautious of the trend line currently sitting at about 1.1436.
There is nothing due today concerning either the EUR or the USD.