Last Thursday’s signals were not triggered as there was insufficiently bullish price action at either 1.1715 or 1.1680.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1650 or 1.1615.
- 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.
- Take off 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
This pair has been at the heart of the Forex market for months, continually making new highs and moving strongly upwards, particularly in recent weeks. Towards the end of last week, on Thursday, the price made another new 2-year high, and has even traded above the psychologically important level of 1.1750.
It now seems as if the upwards move might be running out of steam and beginning a period of consolidation or deeper pullback. We have the beginning of a double top formation at about 1.1760. The price is contained within a clear medium-term bullish channel which is likely to provide some structure to the movements. The closest support may be at 1.1700 where there is a confluence of a round number, a short-term trend line, and a previously resistant inflection point, although 1.1650 still looks more likely to be reliable.
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There is nothing due today concerning the EUR or the USD.