Last Thursday’s signals were not triggered as there was no bearish price action at 1.1627.
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 1.1624.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1685 or 1.1724.
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
After falling quite steadily for several weeks on low volatility, the Euro has started to attract some attention by rising since the middle of last week. Before bulls get overly excited by this, they should take a look at the chart below, which shows that the price is still clearly within a medium-term bearish channel, and has still not matched its high at the previous rejection of the resistance at 1.1685. This looks like it is going to be a pivotal level, with the price either rejecting it and forming a bearish double top for a short trade entry, or breaking up above it, which would be a bullish sign hinting at a resumption of the long-term upwards trend.
There is nothing important due today concerning either the EUR or the USD.