Last Thursday’s signals were not triggered, as there was no bullish price action at 1.1789.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1534.
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 ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.1623 and 1.1645.
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 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 ECB’s input last Thursday sent the Euro falling quite dramatically as it broken out of its consolidating triangle, by almost 200 pips in a single day, which is a large move for this pair. The price is now below its level of 3 months so I define the long-term bullish trend, which has been one of the strongest Forex trends of 2017, as over. I think there is a lot of bearish momentum, so the price may fall further this week. The price is currently retracing, and a bearish bounce close to 1.1645 triggering a short might be a good trade today. As it is Monday and there is no news, movement may be relatively small, so it would make sense to be conservative with profit targets, even though there is no obvious support nearby.
There is nothing due today concerning either the EUR or the USD.