EURUSD: Bullish break to new 3-month high price
Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1285 or at 1.1304.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered between 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1397 or 1.1476.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1312.
Place the stop loss 1 pip below the local swing low.
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 Thursday that despite the recent rise in price, the Euro was not relatively strong at all. The price also remained within a long-term range. I had no directional bias and I expected that the price would consolidate between 1.1285 and 1.1251.
I was completely wrong, the U.S. Dollar fell heavily while safe haven assets, and also some risky assets, rose strongly, and that was enough to send this pair breaking up to a new 3-month high.
The outlook is now bullish due to this breakout, at least for today, so long trades here on pullbacks could be good opportunities. However, as it is Monday with no major news events scheduled, price movement could be slow.
There is nothing of high importance due today regarding either the EUR or the USD.