Last Thursday’s signals were not triggered, as the bearish price action at 1.1748 was not sufficiently strong to trigger a short trade entry, although it did cap the day’s high price.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today over the next 24-hour period.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1748, or 1.1769.
Put 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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1679.
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 25 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 was correct to take a bearish bias last Thursday, as the price continued to behave technically and respect the long-term downwards trend and key support and resistance levels. The price continued to fall up to the weekly close, with the Euro being the weakest currency of all last week. This was partially due to the increasing prospect of an Italian government being former which would be negative for the Euro, but that prospect appears to have ended now. This has made the Euro open much more strongly, with a gap up, despite the long-term bearish trend. Trading is likely to be think after the Asian session today, due to holidays in both London and New York. The rally may well continue for a while, but the first real test will not come until the resistance at 1.1747 is reached confluent with the key psychological level at 1.1750. I have no directional bias today.
There is nothing due today concerning either the EUR or the USD. It is a public holiday in the United States today.