EURUSD: Bearish as 2-year low in sight
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be entered before 5pm London time today only.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1159 or the area between 1.1172 and 1.1180 or 1.1220 and 1.1225.
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 immediately upon 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 picture had become even more bearish and as long as the price continued to fall bears should be encouraged. I was ready take a bearish bias upon a bullish retracement to the resistant zone which begins at 1.1172 which then made a firm bearish reversal.
I was correct to see the probability on the bearish side, but unfortunately a retracement to the resistance at 1.1172 never happened. The price has continued to fall and printed new lower resistance at 1.1159. Volatility is relatively low but there is no reason not be bearish and I would take a bearish bias today if we get a retracement to 1.1159 and a bearish reversal there. One key thing to watch is whether the price can get below the 2-year low price at 1.1106.
There is nothing important due today concerning the EUR. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.