My previous EUR/USD signal last Tuesday gave a losing short trade from the bearish rejection of the resistance level at $1.1532.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken prior to 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 $1.1640, $1.1662, or $1.1672.
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.
Long Trade Ideas
Long entry following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1577, $1.1525, or $1.1486.
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.
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.
In my previous EUR/USD analysis last Tuesday, I thought that the EUR/USD currency pair was looking bullish, but I was expecting bulls to run out of momentum.
I thought that the resistance level of $1.1532 could be pivotal and I was almost right – the swing high was a few pips above that level.
The technical picture has continued to be bullish, with the price chart below showing a clear succession of higher lows on a stairstep basis over almost two weeks now.
I think rejections of either of the two nearby support levels, especially the one just below the price as the London open was approaching at $1.1578, would create attractive entry opportunities for a long trade.
The price will likely find it hard to break above the cluster of three resistance levels between $1.1640 and $1.1672, so that will probably be a natural ceiling today.
There is nothing scheduled today concerning either the Euro or the US Dollar.
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