Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1891.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 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 1.1891 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 ride.
Short Trade 1
· Short entry 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 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
Last Thursday and Friday saw a strong continuation of the bullish move, with the Euro advancing more strongly than the British Pound, which has also been bullish. Resistance has been broken quite easily, and new higher support levels printed. There is a long-term bullish trend. So, there are several reasons to be bullish on this pair and the Asian session price action also looks reasonably bullish. However, its important to note that there is a large psychological number not far ahead, at 1.2000, and there are a couple of key resistance levels within a 40-pip range below that. This means that the price, in the absence of any scheduled news, will probably struggle to get to 1.2000 today. It doesn’t mean that the price will fall, just that it probably won’t get too much higher today.
Concerns over a new German Government after the breakdown of coalition negotiations have not held back the Euro, and in recent hours the Chancellor’s party has approved the pursuit of a grand coalition with the SPD party, which should be good news for the Euro. I have a bullish bias.
There is nothing important due today concerning either the EUR or the USD.