EURUSD: Can bears break below key support at 1.1200?
Yesterday’s signals were not triggered as there was no bullish price action at 1.1235.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1235.
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 that the price was currently right in the middle of both its long and short-term ranges and looked quite “dead”. We had no direction here at all, so trading this currency pair was probably best avoided, I thought.
The price ended up falling with reasonably strong bearish momentum as the U.S. Dollar strengthened, but the Dollar’s advance was stronger against other currencies such as the British Pound.
The price is currently testing the key support level at 1.1199. A break below that would be a relatively bearish sign, so it will probably be today’s pivotal point. The story behind the action is a strong fall in the British Pound, which is dragging the Euro lower, but the fall is sharper in the Pound.
I prefer to trade GBP/USD rather than this pair today.
There is nothing of high importance due today regarding either the EUR or the USD.