Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
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 1.1724 or 1.1685.
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 1.1891.
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
Although this pair had not been able to follow through on its strong rise during the earlier part of last week, the news a few hours ago that negotiations on forming a new German government have collapsed has hit the Euro, and sent the price down to rest on the nearest support level at 1.1724. If any good news emerges in the next few hours, we can expect the price to rise from this support. If there is no news, the price will most likely consolidate or even break down further. The next support level at 1.1685 is very significant as it is a key level on the daily chart as well, so a strong bullish reversal there could be an excellent long trade entry.
Technically, the price is in a bearish flag within a longer-term upwards trend, although this upwards trend is in danger and could come to an end if the price falls much further.
There is nothing important due today concerning the USD. Regarding the EUR, the President of the ECB will be testifying before the European Parliament from 2pm London time.