Yesterday’s signals were probably not triggered as the bullish price action took place a little way below the support level identified at 1.1388.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1382 or 1.1295.
- 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 the bearish trend line which is currently sitting at about 1.1435.
- 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 did very little yesterday, which is not surprising as it was a Monday and there was no high-impact news scheduled for either currency. The only adjustment from yesterday is to move the likely closest support level down a little, by just a few pips. 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. I maintain a bullish outlook, but am cautious of the trend line currently sitting at about 1.1435.
There is nothing due today concerning either the EUR or the USD.