Last Thursday’s signals produced a profitable long trade following the bullish doji candle rejecting the support level identified at 1.1838 and then breaking upwards. The bullish move reached the nearest resistance level at 1.1961 the following day, which was an obvious exit point for that trade.
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 1.1838 or 1.1750.
- 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 1.1961.
- 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.
- Take off 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 predicted last Thursday that the price would continue to fall to 1.1838. This happened, with the price rising from there, but being held by the resistance at 1.1961. The medium-term situation looks much more bearish now, with a major lower high, and plenty of selling. Although trend lines can be drawn as shown in the chart below putting this pair within a consolidating triangle, I do not really believe the trend lines tell the true story, which is that the resistance above looks more solid than the support below. I think 1.1750 will be reached before 1.2000. Today will probably be very quiet as it is a public holiday in the U.S.A. and there is no news scheduled.
There is nothing due today concerning either the EUR or the USD. It is a public holiday in the U.S.A.