Last Monday’s signals were not triggered, as there was no bearish price action at 1.1416.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 8am New York time and 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1439.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1334.
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 Monday that we had quite a messy and range-bound technical picture which suggested that directional moves would be questionable and impossible to predict. I had no directional bias. This was a good call as the price went nowhere. I maintain the same approach today, but I note that we may have the start of a medium-term bearish formation with an “over and under” bearish pattern forming its final leg at a new resistance level of 1.1439.
There is nothing important due today concerning either the EUR or the USD. It is a public holiday in Germany, Italy and the U.K., so EUR liquidity should be thin.