Last Thursday’s signals produced a long trade entry from the bullish doji candlestick which rejected the support level at 1.1325 right at the start of the London session, but this only gave the minimum 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1381, 1.1397, or 1.1440.
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 1.1325 or 1.1276.
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 very slightly bullish as the support at 1.1325 was holding and that if it continued to hold as the London session got underway then were quite likely to see the price continue upwards and perhaps reach 1.1381. This was a fairly good call as the price did move up but as I had also suspected, the move was not able to gather much strength.
The picture continues to look mildly bullish as although the price is still within the long-term 1.1250 to 1.1550 price range, we are seeing a bullish price formation with the support at 1.1325 continuing to hold. I take the same approach: if it holds going into the London session, we are likely to see another attempt to make new highs, but the resistance levels starting at 1.1381 may be too strong to break on a Monday when there is no major news scheduled. I would take a cautiously bullish bias at new highs after London opens but only until 1.1381 but the risk to reward on offer may not be worth it. The Euro has been one of the strongest currencies over recent hours, which is another bullish factor.
There is nothing of high importance due today concerning either the EUR or the USD.