Last Wednesday’s signals produced a bullish inside candle break rejecting the support level identified at 1.2000, but it was a losing trade which failed to make the minimum 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may be taken between 8am and 5pm London time today.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1897, 1.1891 or 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
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1962 or 1.1984.
- 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 long-term trend is bullish, but the Euro is flattening out within a long-term consolidating triangle, plainly visible in the chart below. The Euro opens down and ready to be sold following yesterday’s poor performance by the government in yesterday’s German election, with a new party against the European consensus taking almost 13% of the vote and entering Parliament for the first time. Nevertheless, it looks as if there is a good confluence of support a little way below 1.1900 which could hold the price up. I have more confidence in that support that I do in the nearby resistance levels.
There is nothing due today concerning the USD. Regarding the EUR, the President of the ECB will be speaking at 2pm London time.