EURUSD: Bears approaching long-term low price
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s EUR/USD Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.1161 or 1.1199.
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 Trade Idea
Go long immediately upon the next touch of 1.1030.
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 as long as the price remained below 1.1161, the picture would remain bearish. If the price was below 1.1140 at 9am London time, I was ready to take a bearish bias on this pair until the round number at 1.1100. The price was just below 1.1140 at that point and has moved down but by only a few pips.
The picture remains bearish, with the Euro currently the weakest major currency without any doubt. However, we are getting very close now to multi-year low prices just above 1.1100 and it may be hard for bears to break this down. On the other hand, it might become a significant long-term bearish breakout which leads the price significantly lower.
I would again take a bearish bias on this currency pair if we get two consecutive hourly closes below 1.1125 after the ECB releases its Monetary Policy Statement later.
Concerning the EUR, the European Central Bank will release its Monetary Policy Statement and Main Refinancing Rate at 12:45pm London time, followed by the usual press conference fifteen minutes later. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm.