EURUSD: Consolidation above 1.1100
Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
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 yesterday that as capital seemed to be flowing from Pounds into Euros, this was likely to maintain the bearish consolidation we saw here in the EUR/USD currency pair at present above 1.1100.
This was a good call as the price has held up and in fact increased over the past 24 hours.
If the price can get established above 1.1160 during the early part of the London session, it is quite likely to continue to rise to hit at least the first resistance level at 1.1188. I would take a bearish bias between there and 1.1199 if there were a strong bearish reversal between these prices later.
There are very important U.S. data releases due later which could push the price up heavily or produce a strong long-term bearish breakout below 1.1100.
There is nothing of high importance due today concerning the EUR. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm and the FOMC Press Conference half an hour after that.