EURUSD: Threatening a bearish break below 1.1140
Yesterday’s signals were not triggered, but the high of the day was just a pip below the resistance level I had identified at 1.1181.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trade
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1181.
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.
Take off 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
Go long following the next touch of 1.1030.
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.
Take off 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.
EUR/USD Analysis
I wrote yesterday that the only reason for bears to be cautious was that we still had not broken below the recent swing low at about 1.1140. I was ready to take a bearish bias later if the price could trade below that level for a couple of hours.
The price never did trade below 1.1140, instead retracing to just a pip or so short of the resistance level at 1.1181 which holds again, forming a double top, and pushing the price down to an area where it now threatens to break below the low at about 1.1140.
Again, I would be ready to take a bearish bias if the price can trade below 1.1140 for a couple of hours consecutively today.
There is nothing important due today concerning the USD. Regarding the EUR, there will be a release of French Flash Services PMI at 8:15am London time, followed by German Flash Manufacturing and Services PMI at 8:30.