Last Thursday’s signals produced a short trade from the bearish doji candlestick which rejected the resistance level at 1.1840 which gave more than 30 pips of profit before breaking even.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1929, 1.1964, or 1.2005.
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 1.1849, 1.1804, 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 yesterday bullish action would depend upon the bearish trend line being broken and more news from the election count favouring Biden. I saw the price as likely to rise but then possibly make a bearish reversal from 1.1840. This was a good call as these factors all played out as I foresaw.
The apparent Biden victory has weakened the dollar and sent everything else up against it, more or less, with the Euro benefiting, although not as strongly as other “riskier” currencies.
Technically, the price is consolidating, and it is certainly a bullish consolidation, suggesting that we are going to see higher prices.
It seems probable that we will see yet higher prices today, and in this generally bullish technical environment, it seems wise to look for a long trade from any bullish bounce at a key support level. If this sets up, I will take the trade.
Despite the bullishness, it is worth noting that the price here is not yet breaking to new long-term highs, so the picture is not extremely bullish.
News events are unlikely to be a factor in the market today.
Concerning the EUR, the President of the ECB will be speaking at a minor conference at 9:25am London time. There is nothing of high importance due regarding the USD.