Last Thursday’s signals were not triggered, as neither of the key levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1300 or 1.1325.
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 Trade
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1150.
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 level around 1.1250 would surely be the day’s pivotal level. The price was looking heavier, so a decisive breakdown looked more likely to occur. If the price could close for two consecutive hours below it on above-average volatility, I was ready to take a bearish bias until 1.1150. This wasn’t a bad call as we eventually got that break down and although the price mostly went sideways after that, the new lower resistance level at 1.1238 has held so far.
There is a long-term bearish trend and it looks ready to break to new lows. So far, the resistance at 1.1238 continues to hold but it is looking weaker and weaker, so the price may well make a bullish retracement today. I see that level as today’s pivotal point. If it holds and the price breaks below 1.1200 on above-average volatility, I would take a bearish bias here today.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of Retail Sales data at 12:30pm London time followed by ISM Manufacturing PMI at 2pm.