Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1181.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 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 1.1225 or 1.1277.
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 1.1172.
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 would be ready to take a bearish bias if the price could trade below 1.1140 for a couple of hours consecutively, due to the long-term bearish trend.
This initially made about 30 pips of profit on the short side before the price turned around dramatically and moved up strongly from the low at about 1.1110.
The price has slowed down at it approaches a very key pivotal point – the resistance from 1.1220 to 1.1225.
The risk environment is much improved, with risky currencies doing better today while the safe havens are selling off. However, this leaves EUR/USD somewhat on the sidelines. With both London and New York closed today there is likely to be only a little price movement. This makes me think that the resistance at 1.1225 is likely to hold today, so the best approach here now on this currency pair might be scalp short from that level if it is reached later.
Beyond that, I take no directional bias today.
There is nothing important due today concerning either the EUR or the USD. It is a public holiday today in the U.S.A.