Last Thursday’s signals were not triggered as there was no bearish price action at 1.1961.
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 1.1987 or 1.1950.
- 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 1.2095.
- 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
This pair was performing bullishly over last week, and on Thursday the ECB’s press conference gave the price a strong push up to a new multi-year high price, although the price has sold off from there rather quickly, suggesting a double top may have been formed at about 1.2070 which could hold for a while. The U.S. Dollar is currently recovering and it is too early to say whether this could become a trend for at least the first half of this week, but a deeper pull-back in this pair now against the bullish trend might be about to happen.
There is nothing due today concerning either the EUR or the USD.