Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1790 or 1.1825.
- 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 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1670.
- 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
The pair managed to move to the resistance level at 1.1802, the pair's highest in three months, before stabilizing around 1.1736 during Friday’s trading. The current bullish momentum is likely to be affected by the expected comments by ECB Governor Mario Draghi. Technically, holding onto the move above 1.1700 will remain a catalyst for the pair's recent bullish correction. It will be hard to give any strong bearish outlook for this pair unless the price moves towards the 1.1580 and 1.1500 support levels, respectively.
There is nothing important due today concerning the USD or the EUR.