Last Thursday’s signals were not triggered as unfortunately the bullish price action took place a little below the support level identified at 1.1493. However, the level broadly held as excellent support.
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 1.1615.
- 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 1.1680, 1.1715 or 1.1749.
- 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
This pair has continued to make new 1-year highs and is in a very bullish long-term trend. However, we are getting initial indications of a top forming at the key resistance area of 1.1680, which may force the price down in a bearish pull back to at least 1.1615 before it may rise again. A break above 1.1680 would be a bullish sign. The resistance at 1.1750 might be very strong; it is an extremely important psychological level for this pair.
There is nothing due today concerning either the EUR or the USD.