Yesterday’s signals produced an excellent and very profitable short trade following the bearish pin candle rejecting the resistance level identified at 1.1989. It would be wise to take more profit, as the price is currently sitting on a supportive trend line.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1838.
- 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 1.1930 or 1.1989.
- 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 Euro fell quite strongly as the Dollar strengthened yesterday. The bearish tone is more pronounced, and this is evidenced from the way 1.1989 began to act as strong resistance, plus the new bearish trend line which can be drawn running through it, as shown in the chart below. The price has broken two supportive trend lines and is currently sitting on the last one, so it looks as if it might hold, at least for some time. There is still a long-term bullish trend, but the price needs to get above 1.1930 before we could be confident that it is reasserting itself.
There is nothing due today concerning the EUR. Regarding the USD, there will be a release of CPI and Unemployment Claims data at 1:30pm London time.