EURUSD: Bearish move halted by 1.1200?
Yesterday’s signals were not triggered, as the bullish price action took place above the support level identified at 1.1206.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1255 or 1.1271.
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 Ideas
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.1199 or 1.1161.
Place the stop loss 1 pip below the local swing low.
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 probably the highest-probability trade setup which might occur in this pair today would be some long pips from a bullish bounce at 1.1206. I thought that level would be the pivotal point. In fact, the level was invalidated, but the price moved little and was unable to get established below the round number at 1.1200, so we can say broadly that this area remains supportive.
The Dollar is strong everywhere, but the Euro is holding up, so it seems there may not be any good opportunities here until at least the FOMC minutes are released later.
I take no directional bias on this pair and would avoid trading it today.
There is nothing of high importance due today regarding the EUR. Concerning the USD, the Chair of the Federal Reserve will be testifying before the House of Congress at 3pm London time, and there will be a release of FOMC Meeting Minutes at 7pm.