Yesterday’s signals were not triggered as there was no bullish price action at 1.1158.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1082.
- 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.
Short Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1157 or 1.1209.
- 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.
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
The price continued its fall yesterday to almost completely erase Friday’s gains, following through from the bearish rejection of the resistance level at 1.1295, eventually breaking below the support level at 1.1157. The low was reached at approximately 1.1140 and the chart below shows this may become a double bottom. However, the level at 1.1157 is beginning to look as though it has flipped from being supported to become resistance. If so, this would be a bearish sign, as is the establishment of a new resistance level at 1.1209. In the absence of any news events scheduled for today, a further fall in the price looks to be the most likely scenario. If the low at 1.1140 breaks the price is likely to get below 1.1100 and possibly even reach the next support at 1.1082.
There is nothing due today concerning either the EUR or the USD.