Last Wednesday’s signals were not triggered as there was insufficiently bullish price action to trigger a long trade entry at 1.1766.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Long Trades
- Go long following a strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1650 or 1.1615.
- 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.
Short Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1788 or 1.1838.
- 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.
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
The price action is much clearer than it was during the middle of last week. Despite the long-term bullish trend which is technically still in force, the price is moving down with a series of clear swings of lower lows and highs, bounded by a strong bearish trend line, which can be seen in the chart below. The trend line may provide resistance if it is reached. It is likely to be a quiet trading day today, as there is no high-impact news scheduled, and it is also a public holiday in the U.S.A.
There is nothing significant due today concerning either the EUR or the USD. It is a public holiday in the U.S.A.