Last Thursday’s signals were not triggered as none of the key levels were hit that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1838.
- 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 1.2000.
- 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
I wrote last Thursday that 1.1775 had probably become new support and that a bullish breakout could have a long-term impact. This is what has happened since then, with comments from Draghi and Yellen boosting the Euro and weakening the Dollar, although it is more a case of a very strong Euro than a very weak Dollar having the impact. This pair has now reached a new two-and-a-half year-high price and looks set to easily reach 1.2000 and possibly beyond soon. The broken trend line just below 1.1900 may provide support for the next strong upwards thrust.
There is no reason not to be very bullish on this pair, in line with the long-term trend.
There is nothing due today concerning either the EUR or the USD.