Last Thursday’s signals produced a losing long trade from the bullish bounce at the support level identified at 1.1819.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1881 or 1.1929.
- Put 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.
- Remove 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 Ideas
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1829, 1.1816, 1.1789, or 1.1767.
- Put 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.
- Remove 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 if the support level at 1.1841 continued to hold, a likely scenario would be another test of the resistance level at 1.1881.
I was correct to imply this was going to be a pivotal point, but wrong to say I was ready to take long trades from bounces at support levels below that, as we got such a bounce at 1.1819 but it did not work out well.
The technical picture now suggests wide ranging consolidation below the resistance level at 1.1881 which held firm last week.
The U.S. Dollar has opened this week as the strongest major currency, but the Euro is not relatively one of the weaker currencies. This suggests long trades are still likely to work out better, but although there are many support levels nearby, it is hard to see one of them as standing out as looking especially reliable.
On the other hand, the resistance level at 1.1881 looks to be very firm so a short trade there could be a good opportunity. Apart from that, I would stand aside from trading this currency pair today.
There is nothing of high importance due today concerning either the EUR or the USD.