Last Monday’s signals were not triggered as neither of the key levels were reached during the specified time session.
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 strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1780.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1816 or 1.1891.
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
The long-term bullish trend technically remains in force, but over the medium term the picture is bearish, with the price dominated by the bearish trend line shown in the chart below. However, we can see some recent buying, and the start of a consolidating triangle formation from which the price will eventually have to break out. Therefore, a bullish break above the upper trend line will be a bullish sign that the trend might be resuming. Conversely, a rejection of the new resistance at 1.1816, especially if confluent with a rejection of the upper trend line, would be a bearish sign, and looks like being the more likely trade set-up today. The support level at 1.1780 does look powerful though, so an earlier touch and bounce there should propel the price to at least 1.1816.
There is nothing significant due today concerning the EUR. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.