Last Thursday’s signals were not triggered, as none of the key levels identified that day were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken before 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2187 or 1.2146.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade Ideas
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2087, 1.2039, or 1.2004.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
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 I saw no reason to stop being bullish as the odds continued to suggest a further rise in price was likely over the day. This was a good call as the price did rise higher over that day.
Last week saw this currency pair make a strong bullish breakout beyond the major psychological level and round number at 1.2000 to rise to reach its highest prices in more than 2.5 years.
Although there was a strong rise over the week, on Friday we saw the beginning of a possibly more significant bearish retracement, after the price got reasonably close to the resistance level at 1.2187. This downwards movement has produced a new lower resistance level at 1.2146 – however, I see the strength of this level as very questionable.
Despite the bearish retracement, the long-term bullish trend remains strongly valid as long as the price stays above the nearest support level at 1.2087, and the odds continue to be in favour of still higher prices here, although that could change if the price does not rise later today.
I will still be looking for long trades today and will be happy to go long following a bullish bounce at any of the key support levels identified above.
There is nothing of high importance scheduled for today regarding either the EUR or the USD.