Last Thursday’s signals produced a profitable short trade from the strongly bearish outside candle rejecting the resistance level identified at 1.1848. It is probably wise to let the trade run if the new resistance at 1.1806 holds.
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 1.1720 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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1806 or 1.1848.
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 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 technical picture is conflicted, and there were no surprises in last week’s release from the ECB. We see what looks like the final leg of a bullish over & under / Quasimodo pattern from 1.1740, which suggests that the price will rise today. However, the same pattern can be seen above exerting bearish pressure from 1.1806, which makes short-term price movement look extremely uncertain. If the price is above 1.1775 at 9am London time, it will probably reach 1.1806. The medium-term trend is bearish, and there is no long-term trend. As no major news is scheduled, it is likely to be a quiet trading day.
There is nothing important due today concerning either the EUR or the USD.