My previous EUR/USD signal on 23rd December produced a profitable short trade from the bearish reversal at $1.1800.
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 timeframe immediately upon the next touch of $1.1739, $1.1749, or $1.1764.
- 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.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1729/4, $1.1703, or $1.1682.
- 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 published just over one week ago, I thought that the EUR/USD currency pair was likely to see $1.1800 as a pivotal point, which could trigger a short trade. This was an excellent, accurate call.
The US Dollar has been showing some strength in recent hours, and most currency pairs are therefore showing a drop in line with that, and this one is no exception.
Liquidity is thin, trading is choppy, and we don’t really have a trend. We also have a lot of support and resistance levels close by, so this pair is likely to be difficult to trade today.
If you are going to trade it, I see the best potential as likely to be a long from a bounce off $1.1725, but I would make that a scalp and be very careful and conservative about taking profits.
A sustained break below $1.1725 would be a bearish sign, and would likely signify a further fall on the first trading day of 2026.
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