Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at 1.1648.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today during the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1748 or 1.1769.
Put 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.
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.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1648 or 1.1600.
Put 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.
Take off 50% of the position as profit when the price reaches 25 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
I wrote last Thursday that I was bullish above 1.1676, and bearish below 1.1648. I was partially correct, as the 1.1648 level held weakly as good support, even though it was hard to trade off it. Despite the long-term bearish trend which has been strong in this pair, the Euro continues to recover, with the price advancing again as the week opens. This short-term price action suggests the price is likely to rise higher as London opens. However, there is a confluence of resistance beginning at the psychological level of 1.1750 which is likely to be a severe test for any further strong advance and may well provide a bearish turning point back into a resumption of the long-term trend is the U.S. Dollar strengthens later. Note that the British Pound is looking stronger than the Euro. I have a weakly bullish bias today between 1.1650 and 1.1750.
There is nothing due today concerning either the EUR or the USD.