Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 1.2296.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 1pm and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2361 or 1.2384.
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 bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2296.
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 had no directional bias last Thursday. The price has essentially gone sideways over the past few days, yet the technical picture has become more bullish as the price has clearly broken out of a short-term bearish channel, which can be seen in the price chart below. Another bullish sign is the way the price is bottoming out close to support at 1.2296, which is very confluent with the round number at 1.2300. Despite these bullish factors, the price has no real buying momentum. As it is a public holiday in most European countries, trading can be expected to be extremely thin until New York opens later, when the price should make a more meaningful movement. I again take no directional bias today but would instead look to take any reversal at a key level if the action looks good.
There is nothing due today concerning the EUR – it is a public holiday today in many European countries. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.