Last Thursday’s signals produced a losing short trade from the bearish inside candlestick rejecting the resistance level at 1.1596.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today, during the next 24-hour period
Short Trades
Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.1709 or 1.1732.
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 Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1629 or 1.1596.
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 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
Last Thursday I had no directional bias as I was very unsure of the short-term direction, which looked as if it could go either way despite the long-term bearish trend. This was a good call as the price did end up making a strongly bullish move due partially to the jump in the value of the British Pound following the Bank of England’s more hawkish rate vote. This move has resulted in the former resistance at 1.1596 becoming flipped to be additional support and has also produced a higher support level above that at 1.1629.
The line of least resistance is certainly upwards, but safe-haven, risk off assets seem to be strong so far this week, suggesting that the price will struggle to rise. It is likely to be a slow trading day today however, so I suspect the most likely scenario is for a gentle consolidation above the 1.1600 area.
There is nothing important due today concerning either the EUR or the USD.