Last Thursday’s signals were not triggered, as there was no bearish price action at 1.2005.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2248.
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
The focus of the Forex market has now shifted to this pair, away from the GBP/USD pair which had been seeing the greatest level of volatility for several weeks. This coincides with a strongly bullish move last Friday, which saw the price make a new 3-year high. This presents a strongly bullish picture, but there are no obvious support levels between where the price is now and 1.2005, making finding a level to buy at difficult. Although there is a long-term bullish trend and the picture looks very bullish, the rise may be halted now, at least temporarily, but an area of resistance just below the psychologically key 1.2250 level. This would be a logical place for the rise to at least pause for a while and make a dip, but the price action should be watched carefully before taking any short trade there.
There is nothing important due today concerning either the EUR or the USD. It is a public holiday in the U.S.A. today.