Last Thursday’s signals were not triggered, as the support level at 1.1535 was not reached until after the end of the London session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1677.
- 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 Trade
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1535.
- 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 wrote last Thursday that there was an obvious new support level at 1.1535 but 1.1580 now looked pivotal as resistance.I was ready to take a bullish bias if the price could get established above 1.1580. The price failed at that level, and then saw 1.1535 hold as support, so this was a good call although not one which generated any profit. The price continued to advance before tailing off in the formerly resistant 1.1630 area. That level has gone, but above the area between 1.1600 and 1.1700 has a long-term pivotal significance, so it may be difficult for the price to rise further, even though underlying conditions and the medium-term trend are solidly bullish. The price has a long way to pull back before meeting any key support, therefore I have no directional bias today, but generally I am much more comfortable taking long rather than short trades in this currency pair.
There is nothing important due today concerning either the EUR orthe USD.