Last Thursday’s signals were not triggered, as unfortunately the bullish price action took place a little way below the support level identified at 1.1596.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 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 1.1759.
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.
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 1.1703 or 1.1676.
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.
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
I took a bearish bias last Thursday, and while the price did fall for the first few hours of the London session, briefly breaching the support at 1.1596, it turned around to rise strongly following President Trump’s comments expressing an overvaluation of the Dollar. The Dollar has continued to fall since then, and the price is now back up in a resistant area at about 1.1750 which is an important psychological level. A medium-term bearish trend line has been breached. Much will now depend upon whether the resistance level at 1.1759 holds. If the price can break convincingly above it, it will be a very bullish sign, as there is room for the price to then rise all the way to 1.1875. If it holds, we can expect a period of consolidation. The only thing I am happy to rule out today is a strong downwards movement.
There is nothing important due today concerning either the EUR or the USD.