EURUSD: More bearish but 1.1199 strong support
Last Thursday’s signals were not triggered, as the bullish price action took place some way below 1.1225.
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 1.1244, 1.1279, or 1.1317.
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 last Thursday that I was wary of trading this currency pair today due to potential resistance at 1.1250 and potential support at 1.1200 which was boxing in the price and making direction uncertain. This was a good all as the price has continued to range. However, the price is now towards the bottom of that range, approaching the key support level at 1.1199, which makes the picture slightly bearish, in line with the weak long-term bearish trend. Nevertheless, I still expect 1.1199 and 1.1279 will hold today, so it is probably only worth scalping off either or both levels now. I have no directional bias on this currency pair today.
There is nothing of high importance due today regarding either the EUR or the USD.