Last Thursday’s signals were not triggered as none of the key levels were reached during the London session.
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 1.1445 or 1.1547.
- 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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1393, 1.1368, or 1.1354.
- 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 that 1.1354 was likely to pivotal, but it was not reached until late in the day.
The USD has sold off in recent days as its long-term bullish trend has come into question. This gives an opportunity for other currencies to rise against it and surprisingly the EUR has shown a lot of short-term strength here. If it continues to rise it will soon make a significant bullish break and produce a probability bias in favour of further bullish movement. There is a cluster of three support levels close below the current price, and the short-term action is bullish, so it seems quite probable that the price will rise today. If the price is rising by 9am London time and holding above 1.1400 I would take a bullish bias until 1.1445 at least.
There is nothing important due today concerning either the EUR or the USD.