Last Thursday’s signals were not triggered, as none of the key levels were reached during that session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1445 or 1.1547.
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 Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1424 or 1.1306.
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.
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 the picture was looking a little more bearish, with the support looking more vulnerable, but it was really the British Pound which was driving the market. I had no directional bias but would be very comfortable being bearish after another failed retest of the nearest resistance level at 1.1417. In fact, the price did little that day, but rose slightly and then consolidated.
The picture now is looking considerably more bullish, with the Euro being one of the strongest currencies of recent hours, as the U.S. Dollar weakens. It seems that markets are still fearful and there is a flow into safety assets which includes the Euro. Technically, the break of 1.1417 is a bullish development, and the line of least resistance seems to be upwards. If the support at 1.1424 holds and the price can rise above 1.1450, I would take a bullish bias, and expect the price to rise further.
There is nothing important due today concerning either the EUR or the USD.