Last Thursday’s signals were not triggered, as none of the key levels were ever reached that day.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today, during the next 24-hour period.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1875.
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 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 1.1732 or 1.1680.
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 wrote last Thursday that I had a bullish bias, and this was a good call. The price not only rose that day but has continued to rise in a steady trend supported by the bullish trend line, as shown in the price chart below. The Euro is relatively the strongest currency over the short term, and this pair is the focus of the market. There are no obvious resistance levels until 1.1875 which suggests the line of least resistance is going to be upwards, but I note from longer-term charts that the round number at 1.1800 might be an obstacle if reached. There is no good reason not be bullish, except for the fact that the price is still technically in a bearish trend over the long-term. I think today is likely to be quiet until the New York session, and despite the bullishness I do not have a directional bias today. The best potential trade set-up is likely to be a long trade from a bullish bounce at 1.1732.
Concerning the EUR, the President of the ECB will be testifying before the European Parliament at 2pm London time. There is nothing due today regarding the USD.