EURUSD: More bearish below 1.1317
Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time period.
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 1.1317 or 1.1359.
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 1.1271 or 1.1206.
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 we were likely to see a more bearish environment for this currency pair now and I thought that if the price started to head down further and break below 1.1311, we would probably see stronger falls. This was a good call as this level did break down and the price fell further to a new low of 1.1275.
The environment is still bearish, but the price is close to the support level of 1.1271 which looks more likely to hold, so a period of consolidation seems to be the most likely outcome today.
There is nothing of high importance due today regarding either the EUR or the USD.