Last Thursday’s signals were not triggered, as there was no bearish price action at 1.1350.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 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 1.1357, 1.1380 or 1.1397.
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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 Trade
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Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1257.
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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 technical picture remained the same and the Dollar was strong everywhere, so there were good reasons to remain bearish. However, I noted that the support level below at 1.1350 may also be stronger than the other levels reached previously.
I was ready to take a bearish bias if the price was at or below 1.1345 at 9am London time that day. It was not, and the price hardly moved over the day, so it was an OK call.
The price has continued to fall slowly on relatively low volatility, and the Euro is relatively weak. However, the price is now close to a long-term area of support which begins at about 1.1300 and has been rising slightly over the short-term since the market opened a few hours ago.
There is a confluence of resistance at 1.1357 so I would be prepared to take a bearish bias in the event we get a strong bearish reversal there later today. I think there will be better opportunities in other currency pairs today, however.
There is nothing of high importance due today regarding either the EUR or the USD.
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