Last Thursday’s signals may have produced a profitable short trade from the rejection of the resistance level at 1.1220 / 1.1225.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1181.
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
Long entry following the next touch of 1.1030.
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 price chart had become dominated by a new area of resistance at and just below 1.1225. This gave us a bearish technical picture in line with the slow but definite long-term bearish trend.
This was a good call as Thursday say the price retrace to that resistant area from where it then fell quite strongly. The price then printed new lower resistance at 1.1181 and is heading now towards multi-month lows and is making new short-term low prices during the Asian session.
The Euro is relatively weak, and all technical factors point towards a bearish day, so I take a bearish bias on this currency pair below 1.1181.
There is nothing important due today concerning either the EUR or the USD.