EURUSD Analysis: Euro holds up above 1.1200 as a safety asset
Yesterday’s signals were not triggered as there was no bullish price action at 1.1213.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1277.
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.
Remove 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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1204.
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.
Remove 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
I wrote yesterday that 1.1213 would be the day’s pivotal point. I was wrong, it was in fact 1.1204, a few pips lower than that.
The Euro is holding up relatively well in the current risk-off market environment as a semi-safety asset.
There is a long-term bearish trend in this currency pair, but it is not safe to trade with this trend until the price gets established below 1.1200.
If the support at 1.1204 holds, the price is likely to rise towards the 1.1250 area again but may again find this psychological level impossible to clear.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.