Last Thursday’s signals produced a profitable long trade following the bullish inside candlestick on the hourly chart which rejected the support level identified at 1.1256.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1357.
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
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1302.
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 I saw a long-term pivotal moment here, where the price would either break below 1.1250 and move down from this long-term range or rise to get established above 1.1340 and remain within its medium-term range between 1.1250 and 1.1500. I was somewhat correct, as the 1.1250 area continued to hold, and medium-term action has flattened out. We even have new higher support just above 1.1300 but it looks somewhat unreliable. I would like to see the price break above 1.1357 before giving the balance of power to bulls. The Euro will struggle to find any strength but does seem to be well supported here from 1.1250. If it gets established today below 1.1300 it might test 1.1250 again, but as the USA is on holiday, do not expect a lot of price movement today.
There is nothing of high importance due today regarding the EUR. Concerning the USD, it is a public holiday in the U.S.A.