Last Thursday’s signals were not triggered, as there was no bullish price action at 1.2350.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2292 or 1.2347.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2252.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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
Last Thursday I took a weakly bullish bias on this pair, but I was wrong: the price continued to fall and break down through support. The Euro now is the relatively weakest of all the major currencies as the Yen and British Pound are holding up against the U.S. Dollar, which is also bid up. Despite the long-term bullish trend which remains in force, the technical situation is more bearish, with nothing left to hold up the price below 1.2252 until the round number at 1.2000. This means that if the price does break significantly lower, it could trigger a fall of more than 200 pips quite quickly. On the other hand, 1.2252 would logically be a level where buyers would step in, so it may become good medium-term support. Yet as the situation currently stands, I am more comfortable being long of the Yen or Pound than the Euro today.
It is likely to be a relatively quiet trading session today, so any key level reached will probably hold.
There is nothing due today concerning either the EUR or the USD.