Last Thursday’s signals were not triggered as unfortunately the price came within only half a pip of the support level identified at 1.1838, but did not quite touch it.
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 1.1989.
- 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
We saw some life from the bulls on Thursday, as the price made a low just a fraction above 1.1838 which was anticipated to be support, before rising strongly and breaking bullishly out of a consolidating triangle. The resistance at 1.1989 held, and then the price fell back, and currently looks to be without any life or direction at all as it sits roughly halfway between these two levels which have each acted to hold the price. I do not see the trend lines shown in the chart below as having much influence any more. There is still a long-term bullish trend, but it looks as if this pair is not going to do anything interesting today.
There is nothing due today concerning either the EUR or the USD.