EURUSD: More bullish above 1.1251
Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.1205.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 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 1.1285 or 1.1304.
- 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 Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1251 or 1.1207.
- 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.
- 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 it looked like we were set for lower prices, however, I warned that volatility remained low in this pair and movements tended to be modest. I was ready to take a bearish bias if we saw an hourly candlestick made new lows on above-average volatility.
I was completely wrong, but it was enough to stay out of trouble and avoid any short trades. The price has risen quite strongly, and this rise accelerated as the FOMC release pointed to further rate cuts, weakening the USD against more or less every other currency. Although the Euro benefitted from this, it was not a major beneficiary, which tells us that the Euro is not relatively strong at all. This means this pair is not really in the market’s focus today and there are probably better opportunities elsewhere. The price also remains within a long-term range.
I have no directional bias today. It would not surprise me if the price consolidates now between 1.1285 and 1.1251.
There is nothing of high importance due today regarding either the EUR or the USD.