Last Thursday’s signals produced a profitable long trade following a bullish pin candle on the hourly chart rejecting the support levels identified at 1.1826 and 1.1813.
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 entry into the zone between 1.1826 and 1.1813.
· 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
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1962.
· 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
I was right to take a bullish bias at the end of last week, as the price finally moved up and broke a resistance level after rejecting the support levels at 1.1826 and 1.1813 simultaneously. However, the price has come down again, and has remained unable to break up past the higher resistance at 1.1962. This suggests that the price is now going to come down again to test at least as low as 1.1826. I have a slightly bullish bias, but the U.S. Dollar is strong and will probably remain so for a day or two, so this might not be a great pair to trade today.
There is nothing important due today concerning either the EUR or the USD.