Last Thursday’s signals were not triggered, as neither the nearest support nor resistance level were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1688, 1.1719, or 1.1775.
- Place 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.
Long Trade Idea
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1638.
- Place 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
I wrote last Thursday that the odds here were still in favour of the bears over the next day, but I would not be surprised to see a bullish retracement begin from a bullish bounce at 1.1624 if that level was reached later.
This was an OK call insofar as the low of the day was just a few pips above 1.1624 and we saw a bounce from that area.
This pair was in a relatively firm medium-term bullish trend, but over the past few days we have finally got a weak bullish retracement. However, although the price has managed to print a new higher support level at 1.1638, bulls should not get too excited for a more extended bullish move until we see the price get established above 1.1688 and ideally also 1.1700.
This currency pair still looks likely to turn bearish again, but if we see the day close above 1.1700, that will suggest that the bullish retracement will have further to run.
There is nothing of high importance due today regarding either the EUR or the USD.