Last Thursday’s signals were not triggered, as there was insufficiently bearish price action when the resistance level at 1.2260 was first reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 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 1.2260, 1.2300, 1.2310, or 1.2354.
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.
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 Idea
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2210.
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.
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 as all factors pointed so strongly to a very bullish picture in this currency pair, with a long-term bullish trend and a price trading in “blue sky”, I continued to see only long trade opportunities here.
This was a good call, as the price here continued to rise over the London and New York sessions that day, reaching a new 2.5 year high at 1.2272.
The price made a relatively gentle bearish retracement on Friday before recovering to close only 20 pips or so off Thursday’s high. This would normally be nothing for bulls to worry about, but the price chart below shows that the price has fallen quite strongly since markets opened a few hours ago, with two resistance levels having asserted themselves.
The short-term price action looks bearish, and the price seems to have room to fall further to the 1.2100 area. Therefore, I will be happy to take a bullish bias here if we get a bullish bounce later at the support level of 1.2107 during today’s London session.
There is nothing of high importance scheduled today regarding the EUR or the USD.