EURUSD: More bearish below 1.1161
Yesterday’s signals were not triggered, as there was no bullish price action at 1.1161.
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 1.1161 or 1.1199.
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 Idea
Long entry immediately upon the next touch of 1.1030.
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 we had a more bearish picture as long as the price remained below 1.1191. I thought that the best opportunity looked short between 1.1199 and 1.1161. I would take a bearish bias if the price was below 1.1185 at 9am London time until 1.1161. This was a good call as the price was below that level then and it continued to fall and not only reach 1.1161 but get even lower.
There are no key levels left before 1.1030, but the price is now close to long-term lows which could provide support. As long as the price remains below 1.1161 now, the picture will remain bearish. If the price is below 1.1140 at 9am London time, I would take a bearish bias on this pair today until the round number at 1.1100.
There is nothing of high importance due today regarding the USD. Concerning the EUR, there will be a release of French Flash Services PMI data at 8:15am London time, followed by the German equivalent plus Manufacturing numbers fifteen minutes later.