Last Thursday’s signals were not triggered, as there was no bullish price action last Thursday when the price reached 1.1659.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1580 or 1.1633.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1535 or 1.1496.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 the picture was more bearish and that if the U.S. GDP data due later was strongly positive, we could expect the price to continue to move down with some healthy momentum. This was a great call, and this pair has fallen strongly since then, it is currently falling with more momentum than any other major currency pair. It has already broken down below one support level and is currently challenging another at 1.1535 which looks as if it may also break. It looks quite likely that the price today will reach very close to the big round number at 1.1500, where it may finally find a floor. I take a bearish bias below 1.1566 today.
Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3pm London time. There is nothing due today concerning the CAD.