Last Thursday’s signals were not triggered, as there was no bearish price action when the price reached 1.1732 that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of either of the bearish trend lines sitting in the price chart below, which are currently sitting at about 1.1820.
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 1.1732, the bullish trend line shown in the price chart below currently sitting at about 1.1700, or 1.1659.
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
Last Thursday I noted that the price was stuck within a consolidating triangle, with both major support and resistance holding. The short-term price action suggested a very weak bullish bias, but I saw the triangle as likely to hold. I was wrong, as in line with the price action we saw a strong bullish breakout and a flipping of the former resistance level at 1.1732 to become new strong support.
The picture now is unquestionably bullish, with the price well established within a wide bullish price channel which is drawn within the price chart shown below. There has been strong selling in the 1.1800 area, but if 1.1732 continues to hold, the price should begin to move upwards again. There are no key resistance levels until 1.1875 but the trend lines at about 1.1820 are likely to act as resistance if they are reached today.
I take a bullish bias above 1.1732.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.