EURUSD: Bears threaten pivotal point at 1.1172
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1225 or 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 1.1172.
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 the resistance at 1.1225 was likely to hold today, so the best approach here on this currency pair might be scalp short from that level if it was reached later. Although I took no directional bias overall, the direction of the day was downwards so I was on the right track by looking at a downwards move from resistance.
The picture now has become more bearish with yesterday’s move down to an area near the support at 1.1172. There is a long-term bearish trend, although it is slow. This suggests that the odds today should be with the bears, but there is a support level at 1.1172 that the bears need to overcome before the price can make a truly significant downwards movement. If the price closes below 1.1172 on above-average volatility during the first half of the London session, I would take a bearish bias. The support at 1.1172 is likely to be today’s pivotal point.
There is nothing important due today concerning either the EUR or the USD.