Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1295 or 1.1235.
- Place 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.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1388.
- Place 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.
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
The price was held at a 1-year high from a very long-term bearish trend line at about 1.1440, and has been falling ever since, breaking below the new support level of 1.1388 which has now probably flipped to become resistance. Although the price is falling quite strongly, there is nothing abnormal about this move as a pull back within a long-term bullish trend, so there is no compelling reason to switch bias yet. However, it is true that the price has reached an area which has acted as long-term resistance for more than 2 years, so it would not be a great surprise if it turns out we have already made a long-term high.
It looks as if the price is heading for the next support level at 1.1295.
There is nothing due today concerning either the EUR or the USD. It is a public holiday in the U.S.A.
