Last Thursday’s signals produced a short trade entry from the bearish pin candlestick on the hourly chart which rejected the resistance level identified at 1.1594 right at the New York open. However, this trade gave only a little more than the minimum 20 pips of profit.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1633.
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 1.1515 or 1.1480.
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.
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 no bias but noted the situation was more bullish and that a sustained break above 1.1600 would be a very bullish sign. The price remained held by 1.1600 for the day’s session so it was an instructive pivotal point to identify as a yardstick to measure what was going on. The price has subsequently pulled back but has not been able to break below the support level at 1.1541, which has held. There is no long-term trend, the price has spent the past few months compressed between roughly 1.1500 and 1.1800, so it would not be a surprise if the support here held and the price continued to move up today as the line of least resistance looks like it is upwards.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.