Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1445.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken and closed before 5pm London time today.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1416.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 Trades
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1334.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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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 the Euro seemed to have a good flow and should be able to advance further if it could break above 1.1445, where I would take a cautiously bullish bias later. This was a pretty good call as the price was able to advance by another 40 pips after it reached 1.1445. However, the price quickly sold off, and has basically been heading down primarily ever since. We are now back below the only nearby key resistance level which is now at 1.1416. Basically, we have quite a messy and range-bound technical picture which suggests that directional moves will be questionable and impossible to predict. As to this the usual thin Christmas Eve liquidity and it looks like a good idea to avoid trading this pair today. I have no directional bias.
There is nothing important due today concerning either the EUR or the USD. It is a public holiday in Germany, so EUR liquidity should be thin.
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