Last Thursday’s signals were not triggered, as there was no bullish price action at 1.1277 or 1.1240.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered between 8am New York time 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 1.1250 or 1.1277.
- 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 Trade
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1214.
- 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
Last Thursday I was looking to 1.1325 as the pivotal level for the day, but I was really looking for a bullish break above that. I was wrong as the price turned sharply bearish instead, but I was right about 1.1325.
There is a long-term bearish trend, but there is consistent buying close to 1.1200 and it looks as if the support just above that will hold up today.
Today’s action is likely to be very thin, at least until New York comes online, and there is also an absence of data releases. I see today’s pivotal level as likely to be 1.1250. If the price can get established above that I think it is likely to continue upwards, to at least 1.1275.
There is nothing important due today concerning either the EUR or the USD, and it is a public holiday today in most of the Eurozone countries.