Last Thursday’s signals produced two short trades: the first lost but the second trade, from the rejection of 1.2340, produced some profit over the following hours.
Today’s EUR/USD Signals
Trades may only be entered before 5pm London time today.
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2369 or 1.2436.
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 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.
Despite the long-term bullish trend, there has been a medium-term bearish trend line driving the price down, as shown in the price chart below. This formation has been broken over recent hours, as the markets turn against the U.S. Dollar a little and the price has broken up above the trend line. It is noticeable that this bullish break is weak, and the Euro has made less headway against the weak U.S. Dollar than the Japanese Yen and British Pound have. This suggests that there may not be a great deal of potential on the long side here, but that if the Dollar strengthens again there should be a relatively strong fall.
Concerning the EUR, the President of the ECB will be testifying before the European Parliament at 2pm London time. There is nothing due concerning the USD.