My previous EUR/USD signal on 12th February produced a losing short trade from the bearish reversal at $1.1887, although this was the pivotal point of the day.
Today’s EUR/USD Signals
- Risk 0.75%.
- Trades must be taken before 5pm London time today.
Short Trade Ideas
- Short entry following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1856, $1.1887 or $1.1949.
- Put 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.
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Long Trade Ideas
- Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1833, $1.1806, or $1.1766.
- Put 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
In my previous EUR/USD analysis last Thursday, I thought that the EUR/USD currency pair was
likely to see a move higher, but the price must first get established above the pivotal point at $1.1887 which was formerly support.
This was a great call insofar as I was completely right about $1.1887 being the pivotal point, although the bullish breakout which I thought was somewhat likely did not set up.
The price action has turned bearish, although the US Dollar is not especially firm, we are seeing the Euro decline, possibly driven by a chill on risk sentiment which we are seeing this week.
The price is currently sitting on key support at $1.1833 after falling to test it with firm bearish momentum.
If the price gets established above $1.1833, I think we will see a further fall to at least $1.1806 and that it will be a down day.