By: DailyForex
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
- Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2293, or 1.2330.
- Put the stop loss 1 pip above the local swing high.
- 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 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
Although U.S. Dollar strength persisted into the end of last week, driven by the strong sell off in U.S. and other stock markets, the Euro held up against the greenback well, and has risen over recent hours in line with the small recovery in stocks. We may be seeing a basing consolidation and the beginning of an upwards movement in line with the still existing long-term bullish trend. However, there is plenty of resistance close to the current price: a medium-term bearish trend line is confluent right now with a horizontal resistance level at 1.2293, and there is another level not far beyond there at 1.2330. As there is no major news scheduled today, there is a good chance these levels will hold, especially if there is a failed test relatively early in the London session.
There is nothing due today concerning either the EUR or the USD.