Last Thursday’s signals were not triggered as there was no bullish price action when the price reached 1.1750.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 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 1.1715 or 1.1650.
- 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1838 or the bearish trendline shown in the chart below currently sitting at about 1.1785.
- 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
There is still a long-term bullish trend, but for almost three weeks we have seen the price become firmly established within a wide bearish channel. We have a new support level at 1.1715, but we also have a bearish inner trend line shown in the chart below which has successfully held the price down. A bullish break above the inner trend line should see a move to the major upper trend line of the channel, which could produce a good short trade. It looks as if the London session will see a continued fall in price though, leaving a potential bullish reversal at 1.1715 as a potential long trade entry. Any profits on the table should be taken conservatively today.
There is nothing due today concerning either the EUR or the USD.