A short trade on EUR/USD from last Thursday has turned out to be relatively profitable, triggered by a bearish rejection at the $1.1805 mark, as indicated by the hourly pin bar.
- Risk involved is 0.75%.
- Trades can be initiated before 5pm London time today.
- Consider going short on the next touch of $1.1840, $1.1856, or $1.1887, provided there is a bearish price reversal in the H2 timeframe.
- Set your stop loss 1 pip above your local swing high.
- Once the trade hits 20 pips in profit, adjust your stop loss to break even.
- At 20 pips profit, take 50% of the position off the table and keep the rest open.
- If there’s a bullish price reversal on the H1 timeframe, go long on the next touch of $1.1805, $1.1774, or $1.1760.
- Set your stop loss 1 pip below your local swing low.
- Adjust your stop loss to break even at a 20-pip profit.
- After reaching 20 pips profit, secure 50% of the position and leave the remainder running.
Identifying a classic “price reversal” often involves recognizing the close of an hourly candlestick, like a pin bar, engulfing candle, or similar formations with higher closing prices. Monitoring price movements at these specific levels can provide advantageous opportunities.
The bearish price channel illustrated through linear regression analysis is breaking upward, suggesting a shift from bearish to bullish in the short to medium term. Today’s price increases can largely be attributed to the U.S. Supreme Court’s ruling against President Trump’s “Emancipation Day” tariffs. Shortly after this ruling, President Trump imposed new 15% tariffs under a different authority, which led to some confusion and a slight drop in overall U.S. assets, including the dollar.
Monday appears to be relatively calm, with support and resistance levels very close to the current price action, suggesting that the price might range between $1.1805 and $1.1840. However, a drop below $1.1800 would suggest a more bearish trend.
Scalping off the bounces off these levels seems to be the most effective strategy for today’s London session.
(image23022026eurusd)
Nothing significant is on the schedule today for the euro and U.S. dollar.
