Last Thursday’s signals produced a short trade following the bearish doji candlestick rejecting the identified resistance level at 1.1426. It was profitable, but only for the minimum 20 pips.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of1.1388 or 1.1295.
- 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 1.1461 or 1.1493.
- 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 continued to hold up at the end of the week, in line with the strong long-term bullish trend, and made a new 1-year high price at 1.1445. The price met here with a long-term bearish trend line, which has succeeded in holding the price down over recent hours. The price now looks to be consolidating around 1.1400.
It would be wise to be extremely careful about taking any short trades in this pair. Long trades will probably have a much better chance of success, and there is new support now far away at 1.1388.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.