Last Thursday’s signals produced a losing long trade from the doji candlestick which rejected the support level at 1.1480.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1527, 1.1547, or 1.1572.
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 1.1480 or 1.1444.
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 momentum is with the bears and that if the price could go on to break below the next support at 1.1480 I would again take a bearish bias. The price did eventually break below 1.1480 and fall about another 50 pips from there so it wasn’t a bad call, although the break only came very late in the London session.
We have had a strong bullish retracement, but there is no doubt that this pair is in a low-volatility bearish trend, meaning downwards movement is most likely, but it will tend to bounce back quickly. As such, short trades still look like a good bet. The longer that the resistance at 1.1527 holds, the more bearish I will become, but I have a feeling this movement will not happen until tomorrow.
There is nothing important due today concerning either the EUR or the USD.