My previous EUR/USD signal yesterday produced a losing short trade from the bearish reversal at $1.1887, although this was the pivotal point of the day.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades may only be entered prior to 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1856, $1.1887 or $1.1949.
- 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.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1831, $1.1806, or $1.1766.
- Put the stop loss 1 pip below the local swing low.
- Adjust 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 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
In my previous EUR/USD analysis yesterday, I thought that if the the EUR/USD currency pair got established below $1.1833, I thought that we would see a further fall to at least $1.1806 and that it would also be a down day. This was a good and accurate call, except technically it wasn’t a down day.
The price has rebounded in recent hours, although it is still within the bearish price channel indicated by the linear regression analysis within the price chart below. Yet the slackening of the bearish momentum is suggestive that we may see a short-term trend change to bullish, and the earliest indication of that will almost certainly be a break above the resistance level at $1.1856. So, I think this is quite likely to be today’s pivotal point, although at the time of writing the short-term price action is bearish.
We also see an issue with the support level at $1.1831, which might hold. A bullish bounce here might give an early opportunity to go long well before a bullish breakout at $1.1856.
A short trade at a failed test of $1.1856 could also be good, as it would be in line with the existing short-term trend after it failed to change direction.