EURUSD: Bullish break to new 3-month high price
Yesterday’s signals would have produced a losing short trade from 1.1397 if such a strongly counter-trend trade had been taken.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken 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 1.1476.
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 1.1375.
Put the stop loss 1 pip below the local swing low.
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 yesterday that the outlook on this currency pair had become bullish due to the breakout to new 3-month high prices, at least for today, so long trades here on pullbacks could be good opportunities. However, as it was Monday with no major news events scheduled, price movement could be slow.
This was a good call as over the day the price just continued to grind up slowly on low volatility to reach new higher prices, but barely.
Due to the upwards movement, the outlook remains bullish on this pair today, but a deep bearish retracement which begins suddenly would not surprise me at all.
I would take a bullish bias if we get a pullback to 1.1375 and a firm bullish bounce there.
There is nothing of high importance due today regarding the EUR. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by a speech on monetary policy from the Chair of the Federal Reserve at 6pm.