Last Thursday’s signals were not triggered as there was no bullish price action at either of the support levels.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trades
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Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1477.
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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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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1435, 1.1394 or 1.1378.
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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 both sentiment and technical factors favoured the bulls, so I would take a bullish bias on this pair if the price made higher highs at 9am London time. This was a good call as the price had already begun to fall by then, and essentially continued to move down over the day, so it was enough to stay out of trouble. The area above 1.1500 has also acted as long-term resistance so it wasn’t very surprising that the price was ultimately unable to hold up there.
The U.S. Dollar is advancing almost everywhere and the slight but real strength here is the major story in the Forex market right now. This suggests lower prices, however there is a support level close by at 1.1435 which might hold.
The resistance level at 1.1477 looks attractive as it is currently perfectly confluent with a short-term bearish trend line shown in the price chart below.
Price direction looks relatively uncertain in this pair today. so I take no directional bias.
There is nothing of high importance due today regarding either the EUR or the USD.
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Editors’ Picks
EUR/USD holds above 1.0650 after US data
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GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.