Last Thursday’s signals were not triggered as there were no entry set-ups during the London session.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1358, 1.1380, or 1.1417.
Put the stop loss 1 pip above the local swing high.
Adjust 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.
Long Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1256.
Put the stop loss 1 pip above the local swing high.
Adjust 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.
EUR/USD Analysis
I wrote last Thursday that the price was likely to consolidate in thin trading and it did. It was generally unable to rise above the resistance level at 1.1417 and has fallen from there to produce a more bearish outlook. The long and medium-term trends are bearish, with the medium-term trend evidenced by the bearish price channel shown in the chart below. I would be happy to take a bearish bias today if we see a clear failure to rise higher at any nearby key resistance levels.
There is nothing important due today concerning the USD. Regarding the EUR, the President of the ECB will be testifying before the European Parliament at 2pm London time.