EURUSD: Bears approaching 2-year low price
Last Thursday’s signals were not triggered, as there was no bearish 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 1.1188 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 last Thursday that I would again take a bearish bias on this currency pair if we got two consecutive hourly closes below 1.1125 after the ECB released its Monetary Policy Statement later. We got an initial break below that level after the release, but the price quickly rebounded, so waiting for two hours was enough to keep out of trouble.
Despite that rebound, the price is back down to the 1.1125 area after falling quite steadily ever since that post-ECB spike up. The ECB actually signalled a looser monetary policy approaching, so the continued decline in the Euro has a central bank headwind behind it.
Although the long-term low has not been broken yet, the outlook looks bearish here, and I would take a bearish bias if the price is below 1.1110 at 9am London time today.
There is nothing of high importance due today concerning either the EUR or the USD.