By: DailyForex
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
- Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2361.
- Place 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.
- 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 bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2260.
- Place 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.
- 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
I took a bearish bias last Thursday, and this turned out to be a correct approach, with the price falling further to reach new lows. However, the price then made a triple tap at 1.2222, forming a bullish Quasimodo / over and under pattern which drove the price up to break the bearish trend line shown in the price chart below. Recent hours have seen the price use this broken trend line as support, and a new higher support level has been formed at 1.2260. These are bullish signs, suggesting that the price is more likely to move significantly higher than to move significantly lower today. There is also a weak long-term bullish trend. For these reasons, I take a bullish bias today, although there might not be a lot of price movement today as there are no major news releases scheduled and as it is Monday.
There is nothing due today concerning either the EUR or the USD.