Last Thursday’s signals produced a profitable trade following the bullish outside candle rejecting the support level at 1.1382. If no profit has already been taken, it would make sense to tighten the stop loss for at least part of the position so some profit is assured, whatever happens next, although there is a good prospect of still higher prices.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1409 or 1.1382.
- 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 Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1493 or 1.1534.
- 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
Although other currencies have risen more strongly against the USD in recent days, the Euro is in a strong long-term bullish upwards trend, and has continued to make new long-term highs. The rhythm of the higher lows and highs is bullish and there is no reason to not expect higher prices. The initial price action in today’s trading suggests there may not be much of an upwards movement today, however. Yet overall, we can still expect higher prices. A breakout above 1.1500 would be a bullish sign.
There is nothing due today concerning either the EUR or the USD.