Last Thursday’s signals produced a profitable short trade from the pin candlestick which rejected the resistance level identified at 1.1539. However, this trade only made a little more than the minimum of 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 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 1.1539 or 1.1566.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 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 I had a bearish bias below 1.1500, and this was a good call. The price has continued to look bearish since then, being held down by another bearish trend line shown in the price chart below which has had three touches. There are many resistance levels piling down on top of the price, and the short-term price action also looks bearish, in line with the long-term trend. For all these reasons, I have a bearish bias today, but as the U.S. is on holiday there may not be a great deal of price movement. Another interesting point is the divergence we are seeing between the Euro and the British Pound, which is looking quite strong.
There is nothing important due today concerning either the EUR or the USD. It is a public holiday today in the USA.