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 must be entered 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 1.1431 or 1.1436.
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 1.1340, 1.1306, or 1.1296.
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 despite the long-term bearish trend, it looked quite likely that today would see still higher prices in this currency pair, although the real action should be in GBP/USD. This was a good call, as the price rose to a new high of about 1.1420 that day before pulling back.
The short-term direction here is uncertain. If anything, it looks slightly bullish, and that is certainly counter-trend. Residual strength in the British Pound may prevent the Euro from falling by much. However, bulls can be encouraged by the fact that the price may now have made a long-term double bottom at about 1.1300, which is clearly visible on a higher time frame chart such as the daily chart. I remain optimistic about the long-term bearish trend and would see strongly bearish reversals at any resistance points as good potential short trade entries, although I have no directional bias for today.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.